The reverse mortgage loan is a good source of capital for elderly home-owners. Let us however, acess just how much the reverse mortgage loan really costs.
Some of the attracted fees and payments charged tagging along the reverse mortgage loan are as follows.
This refers to the amount of money required of an individual, group or business to pay in order to enjoy benefits of insurance policies. This, by companies venturing in insurance, is considered to be a sort of income.
Loan Origination fees
This can also be referred to as activation fees and it is associated with initiation process as well as coming to completion of the process involving home loaning. It pays for all work involved in beginning of mortgage application process.
This is essentially a percentage of every individual mortgage payment which the mortgagee pays to the mortgage servicer for maintenance of records, making of payments and other such services.
Appraisal fees refers to the money paid to a certified as well as qualified appraiser who in fact takes part in the estimation of value of an asset or a property.
This refers to the amount of money that the borrower will pay the surveyor. This is to pay for the service of the obtaining of measurement of a property, precisely so.
This is the fee charged by an attorney who examines the title for any issues that have been recorded to ensure that every detail is well accepted by the client
Title insurance fees.
The title is insured against a number of destructive factors and its insurance is paid in form of what is referred to as title insurance fees.
Reverse mortgage interest.
This is the interest which the reverse mortgage loan attracts. The interest is paid to the lender usually as a service charge for lending of money.
Flood certification involves the payment of flood certification fee which is essentially paid to determine whether an asset or a property is located in a flood zone. This certification will also stipulate payment of flood insurance as well.
These essentially refer to delivery fees. Delivery most especially of documentation appertaining to the mortgage application and clearance.
This is fee which is charged for preparation of any legal documents for a transaction. They are usually charged by an attorney and the fees vary with the company or organization with which one chooses to work.
Fees paid to the records office of the county, the records office is responsible for storage, maintenance and retrieval of documents when needed.
Mortgage registration fees
This is payment made for the service of registering a home loan.
Special assessment fees
A fee usually collected for improvement of services
The fee paid to the FDA certified counselor whose work is to walk the borrower through all the terms of the reverse mortgage loan and all logistics involved as well as what is at stake.
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