The fees associated with a reverse mortgage include:
Mortgage insurance: An initial premium of 2% of the loan amount, plus 0.5% of the annual outstanding loan balance each year.
Closing costs: Third-party charges that vary depending on the lender used and can be included in the loan amount.
Origination fees: Up to $6,000 based on home value, which reduces the amount received from a reverse mortgage loan.
Servicing fees: Monthly servicing fees are allowed by FHA regulations for reverse mortgages.