To start, you’ll need to cover the costs of mandatory reverse mortgage counseling, which typically ranges from $125 to $200. You can expect to pay similar closing costs on a reverse mortgage as on other mortgage loan products. Closing costs can include origination fees, third-party service fees (i.e., home appraisal, real estate attorney, etc.) and mortgage insurance premiums.
In addition, there are ongoing costs associated with reverse mortgages, like service fees and interest payments. Before you start a reverse mortgage, you should receive a document called a Good Faith Estimate (GFE) from the lender that details all of the fees and charges. You can use the GFE to compare lender offerings and find the best deal.