Tutorials FAQ
Important Considerations

What you will pay

In addition to interest, a reverse mortgage typically involves four types of fees:

  • An origination fee
  • Third-party closing costs
  • Mortgage insurance premiums
  • A monthly servicing fee

    • You can generally finance these costs as part of your loan by having them deducted from the loan amount.

    When you apply for a reverse mortgage, I'll calculate the loan's Total Annual Loan Cost (TALC). It expresses all of the loan's various costs as an annual percentage and is similar to the Annual Percentage Rate (APR) calculated for standard forward mortgages.

    Choosing Your Payment Plan

    Depending on the specific reverse program you choose, you can select one of four options for receiving your reverse mortgage funds:

  • Term: Provides fixed cash advances for a predetermined time period.
  • Tenure: Provides fixed cash advances for as long as you occupy the property  as your primary residence.
  • Line of Credit: Establishes a credit line that you can draw upon as you wish.
  • Combination: Allows you to combine any of the other three payment options in a way that fits your needs.

    • The Four Nevers of Reverse Mortgage
    Never have to make a monthly payment
    Never be forced to move
    Never owe more than the sale price of your home
    Never give up title and ownership of your home

    Choosing Your Interest Rate Adjustment
    All reverse mortgages carry adjustable interest rates, but with some programs you can choose a rate that adjusts annually or monthly.

    If you choose to receive your reverse funds as monthly cash advances, note that these rate adjustments will not change the amount you receive each month. They only affect the amount of interest that is charged on the total loan balance.

    Next Topic: Managing Your Equity

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    Welcome!
    Robert Trommler,
    Reverse Mortgage Specialist