By Steven Hyde, Founder, Hyde Funding · NMLS #391380. Reviewed October 19, 2026. Hyde Funding is a mortgage lender headquartered in San Diego, lending nationwide since 2015.
Short answer: HECM costs include an upfront and an annual FHA mortgage insurance premium, a lender origination fee (capped by HUD rules), third-party closing costs such as appraisal, title and recording, and interest that accrues on the balance. Most costs can be paid from loan proceeds. Your Loan Estimate shows the exact figures.
An upfront premium based on the home’s value (up to the HECM limit), plus an annual premium that accrues on the balance. It funds the non-recourse guarantee and makes sure you keep receiving payments even if the lender fails. Current rates are published by HUD.
HUD caps how much a lender can charge, using a formula tied to home value with a maximum.
Appraisal, title insurance, settlement, recording, credit report, flood certification and counseling (sometimes free or waived for hardship).
Interest accrues monthly and compounds into the balance. Servicing fees, if any, are disclosed upfront.
Compare the total annual loan cost (TALC) disclosure and Loan Estimates from several lenders.
Yes, or finance them into the loan.
Many HUD-approved agencies charge a modest fee, and some waive it based on hardship.
Mainly because of FHA mortgage insurance, which pays for non-recourse protection.
Talk to Steven: (858) 775-1005 · Free consultation · Apply now
Steven Hyde, NMLS #391380 (NMLS Consumer Access). Equal Housing Opportunity. Reverse mortgage borrowers must live in the home as their primary residence, keep paying property taxes, homeowners insurance and HOA dues, and maintain the home, or the loan may become due. The loan balance grows over time. HECMs are insured by FHA. Hyde Funding is not affiliated with HUD, FHA or any government agency. This is general information, not a commitment to lend. Consult a financial or tax advisor.