This is one of the questions I’m asked most often, and honestly, I enjoy answering it because the answer is usually a relief.
After more than 13 years at HomeEquity Bank, I understand the hesitation. It’s an important financial decision, and it’s natural to want a clear understanding of the costs before moving forward. The good news? The upfront costs are straightforward, transparent, and fully disclosed before you sign. The three main setup costs1:
1. Home Appraisal: $350-$700
Before approving a reverse mortgage, we need to determine the current market value of your home. An independent appraiser assesses the property, and the value helps determine how much equity you may be able to access.
2. Independent Legal Advice (ILA): $500-$1,000
Every client is required to meet with an independent lawyer before signing their mortgage documents.
Why? Because we want to ensure you fully understand how the reverse mortgage works, have all your questions answered, and feel confident about your decision. The cost varies depending on the lawyer and the complexity of your situation.
3. Setup Fee: $1,795
This fee covers the administrative, legal, and registration work required to establish the mortgage.
And, of course, there is interest.
Like any mortgage, a reverse mortgage accrues interest over time.
The key difference is that, unlike a conventional mortgage, there are no required monthly mortgage payments.
If you’d like to explore whether a reverse mortgage could work for your situation, speak with one of our Consultants. We’ll walk you through your options, answer your questions, and help you determine what’s right for you and your family. I’d also be happy to offer you a free copy of my book, Home Run: The Reverse Mortgage Advantage, which explores the product in greater detail.
Call us toll-free at 1-844-569-4321.
Sincerely,
Yvonne Ziomecki-Fisher
Chief Customer, Brand & Advice Officer
HomeEquity Bank
1 Fees shown are reasonable estimates only and may vary depending on your individual circumstances.