What are the closing costs?
The costs associated with getting a reverse mortgage are similar to those of a regular conventional mortgage. Most costs can be financed from the proceeds of the loan and include 2% origination fee, 2% HUD mortgage insurance premium, appraisal, title insurance and title company closing fee, standard recording fee and state mortgage tax . Our representative will provide a good-faith estimate of the costs involved for you.
The closing costs will be a bit more for your Mexican property than what you are accustomed to in the US. On a cash transaction, it will cover the trustee fee, appraisal, homeowners insurance, property acquisition tax (equal to 2 % of the purchase price), and other miscellaneous fees. On average, closing costs run between 7%-10%. Closing Costs without financing may seem much lower. However, please remember that in “Cash Closings” you are not buying Title Insurance, Escrow Services, Title Search, nor a U.S. Market Style Appraisal.
