HOUSTON REVERSE MORTGAGE - REPAYMENT AND COSTS
Repayment
There are no monthly payments to be made with a texas reverse mortgage. The lender pays funds to the borrower and this is a reverse of a forward mortgage. The loan is not due and payable until the borrower no longer lives at the home as a primary residence. The loan is typically paid from the estate of the borrower.
Costs
- Interest is paid on a Houston reverse mortgage when it terminates. The rate is variable and differs depending on the type of program selected. The most popular program has a rate 1 1/2% above the 1 year t-bill. For example if the t-bill is 5% the program rate would be 6 1/2%.
- A mortgage insurance premium is paid to the FHA. At the end of the loan if the ballance is greater than the home value, the insurance will pay the difference. This premium is about 1/3 of the total reverse mortgage costs.
- A loan origination fee is paid to the company that helps you obtain the reverse mortgage. This fee is regulated by HUD and is typically $2,000 or more depending on the loan size.
- Other closing costs may include appraisal, document preperation costs, attorney fees, title company fees, and other costs. The apprasial fee is the only cost paid out of pocket and usually is about $325. A representative can provide a detailed accounting of costs for your Houston reverse mortgage.
- Please call for additional information.
281-537-7800
