Servicing Fees

Reverse Mortgage Home >>> Reverse Mortgage Servicing Fees

All FHA guaranteed reverse mortgages allow the lender to charge you from $25.00 to $35.00 to "service" your loan. 

Servicing fees are the costs incurred at your closing.  The costs built up during the process of the loan. This includes such expenses as processing the monthly paperwork for your loan, keeping track of the taxes on the house, and other menial but required tasks.

This fee is handled differently than most of the other fees.  Servicing fees are set aside. The monthly fee – typically $30- $35  - is multiplied by the number of months they expect you to live in your home which is based on life expectancy.  That amount is then deducted from the total amount of your available funds.  It’s set aside until the monthly fee is added to your growing loan balance each month.

Your servicing fees are usually bundled up in to your loan balance and charged interest as well.

If you can afford to do it, you would be better off paying these fees up front to avoid the interest you will owe.