Other than repaying the principal and interest, what kinds of fees are charged on a reverse mortgage?
A. Most reverse mortgages have an application fee (which may cover the cost of a credit report and an appraisal), an origination fee, typical closing costs, insurance fees and a monthly servicing fee. These charges can be paid from the reverse mortgage itself, making them no immediate burden to the borrowers; the costs are added to the principal and paid at the end, when the loan becomes due. However, there are reverse mortgage products that charge no upfront costs – no origination fee, no application fee, no closing costs, etc.
