Closing costs are way too expensive.
TRUTH: First of all, HUD regulates all fees associated with obtaining a reverse mortgage and most of these fees can be financed into the loan. One-half of the closing costs consist of a mortgage insurance premium paid to HUD for the FHA insurance on the reverse mortgage. If one were to compare the fees with the cost of selling the home (agent commissions, etc), a reverse mortgage is a great savings and the senior homeowner gets to stay in their home. Update: Just recently, many lenders are now waiving their origination and servicing fee’s, reducing the cost to the consumer considerably. Never has the program been so affordable and there hasn’t been a better time to consider a reverse mortgage.