Nothing in Life is Free and there are certain Costs/Fees associated with a Reverse Mortgage in Florida or any state
Florida Reverse Mortgages have come a long way in the past 20 years. They are safe (insured by the Federal Government). Overcharging for a Reverse Mortgage is a thing of the past since most of the third party fees (charges you pay) are governed by the government. Thus, your chance of being taken advantage of are reduced. Finally, all Reverse Mortgage borrowers are required to attend independent counseling sessions before they can obtain a HUD Insured Reverse Mortgage.
NEVER PAY ANY FEES UPFRONT UNTIL YOU HAVE HAD YOUR COUNSELING SESSION.
HUD Insurance: The Lender charges a fee for insuring the Reverse Mortgage. This fee is generally 2% of the maximum loan amount and is paid at the time of closing from your loan proceeds. Plus, the Reverse Mortgage Lender charges a monthly servicing fee of .05% on the outstanding balance of the loan. These fees insure that in the event that the Lender goes out of business, the Government will step in and continue any and all commitments made by the Lender.
Origination Fee: Charged by the Mortgage Banker/Broker/Lender/Loan Officer. They charge a fee of 2% of the loan amount or $2,000 whichever is greater for doing the necessary paperwork, marketing, salaries, processing, and commissions on the Reverse Mortgage.
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Appraisal
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$250-$400
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Flood Certification
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$10-$20
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Pest Inspection
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$35-$75
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Credit Report
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$10-$20
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Recording Fees
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$50-$200
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Document Preparation
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$100-$200
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Title Search
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$50-$100
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Title Insurance Policy
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$4.00-$5.00
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Per $1,000 of loan Amount
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Courier Fees
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$50 - $100
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Closing Fees
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$250 - $500
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