Costs & Rates — Reverse Mortgage Articles

Costs & Rates

Fees, interest rates, insurance premiums, and Principal Limit Factors.

What Does a Reverse Mortgage Actually Cost?

A transparent breakdown of every cost associated with a HECM reverse mortgage: upfront fees, ongoing charges, interest rates, and the real long-term cost.

13 min read

1 Article in Costs & Rates

How PLF (Principal Limit Factor) Works

The HUD-published table that determines your HECM amount. Age, interest rates, and home value — here's the formula.

6 min

Frequently Asked Questions

How much does a reverse mortgage cost?

Reverse mortgage costs include an upfront mortgage insurance premium (2% of home value), origination fees (up to $6,000), standard closing costs, and an annual 0.5% mortgage insurance premium. Most costs can be financed into the loan.

What are current reverse mortgage interest rates?

HECM interest rates are comparable to conventional mortgage rates. Adjustable-rate HECMs are tied to an index plus the lender margin. Lower margins (like 123 Reverse's 1.0%) result in lower overall costs.

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