how hecms work
HECM Loan Costs
HECM loans involve several fees and charges. Which of these is commonly required?
- A finder’s fee that’s paid to the mortgage company for “finding” you a loan
- A maintenance fee for repairs that are needed on your home
- An origination fee that’s paid to the lender for processing your loan
“C” is correct. You also will be required to pay: 1) A mortgage insurance premium or “MIP.” 2) Third party closing costs for items like appraisal, title search and insurance, surveys, inspections, recording fees, mortgage taxes, and credit checks. 3) Loan interest, which is charged at a fixed or adjustable rate. 4) A servicing fee paid to lenders and their agents for services like sending your account statements and disbursing your loan payments throughout the lifetime of the loan. Most of these costs can be paid using proceeds from the loan.