What Costs Are Involved With A Reverse Mortgage?

The costs associated with getting a reverse mortgage include the origination fee, which can usually be financed as part of the mortgage, an appraisal fee and other charges similar to those for regular mortgages.  The money provided to you from a reverse mortgage is tax free; it is not income that you must pay taxes on.  However, the funds received from a reverse mortgage may affect your eligibility for certain kinds of government assistance, so you should check into this before getting a reverse mortgage.

Before applying for a reverse mortgage, you must first meet with a reverse mortgage counselor.  You may, however, first approach a reverse mortgage lender, who can provide you with the names of approved counseling agencies in your area.  A list of approved counseling agencies nationwide is posted on the Web by the U.S. Department of Housing and Urban Development.  The counselor 's job is to educate you about reverse mortgages, to inform you about other alternative options  available to you given your situation, and to assist you in determining which particular reverse mortgage product would best fit your needs if you elect to get a reverse mortgage.  In general, counseling sessions much be done face-to-face.  However, if you are seeking a Fannie Mae reverse mortgage you can do it by telephone.  In some areas, telephone counseling may be available for consumers seeking an FHA reverse mortgage.