Debt Consolidation Credit Counseling In Phoenix

Something to remember: the costs of concluding a reverse mortgage will be lofty. It doesn't make a difference where you reside.

Usually, closing costs are around five percent of the home value, however if the house is considered on the low end in terms of worth, it could be up to 10%.

This can hit some borrowers hard when it takes them by surprise. Many times they consider the harshness of the transaction the loan company's fault.

So, who do we blame when there is no one else to blame? Mostly people like to point their fingers at the mortgage company. Those greedy pigs.

The totality of all the closing costs is made up of anywhere from 5 to 9 companies. And don't forget HUD.

If you look at what is known as a Good Faith Estimate of Costs, you will notice a litany of fees. Only one of these fees is charged by the actual lender. It is known as an origination fee.

Don't get me wrong, the origination fee is still substantial. But it is not the majority of the cost.

The largest fee, typically, is the FHA mortgage insurance premium. FHA charges two percent of the value of the home up to $417,000.

At the highest value of $417,000 FHA can charge over eight thousand dollars in mortgage insurance. The lender can only charge up to $6,000.

This is newly legislated by the way. I think its funny that the government has no problem capping how much money the lender can make, but they don't cap how much they can charge.

This is a side-note.. Did you notice all the phone calls wanting campaign donations? Yes, they are excluded from the National Do-Not-Call rules.

Anyway, another big bite out of the costs comes from the escrow company. They have several fees, including a transaction fee, insurance for the title, and others.

Also add in the official appraisal cost. Sometimes a land inspection is needed as well. These fees are pretty expensive.

I don't know about every states specifications, but rest assured there are other little factors that add to costs as well, and as I said in the beginning, the lender isn't the only one to blame.