Closing Costs

Other closing costs that are commonly charged to a reverse mortgage borrower, include:

* Credit report fee. Verifies any federal tax liens, or other judgments, handed down against the borrower. Cost: Generally under $20
* Flood certification fee. Determines whether the property is located on a federally designated flood plane. Cost: Generally under $20
* Escrow, Settlement or Closing fee. Generally includes a title search and various other required closing services. Cost: $150-$450
* Document preparation fee. Fee charged to prepare the final closing documents, including the mortgage note and other recordable items. Cost: $75-$150
* Recording fee. Fee charged to record the mortgage lien with the County Recorder’s Office. Cost: $50-$100
* Courier fee. Covers the cost of any overnight mailing of documents between the lender and the title company or loan investor. Cost: Generally under $50
* Title insurance. Insurance that protects the lender (lender’s policy) or the buyer (owner’s policy) against any loss arising from disputes over ownership of a property. Varies by size of the loan, though in general, the larger the loan amount, the higher the cost of the title insurance.
* Pest Inspection. Determines whether the home is infested with any wood-destroying organisms, such as termites. Cost: Generally under $100
* Survey. Determines the official boundaries of the property. It’s typically ordered to make sure that any adjoining property has not inadvertently encroached on the reverse mortgage borrower’s property. Cost: Generally under $250