Expect upfront items like MIP, origination, appraisal, title/escrow, plus interest and ongoing MIP over time. Your net proceeds equal approved funds minus payoff of any existing mortgage and closing costs. We show everything line-by-line before you decide.

Upfront Costs (Typical Items)

• Mortgage Insurance Premium (MIP) for HECM

• Origination (lender)

• Appraisal & inspection (when required)

• Title, escrow, recording

• Counseling fee (HECM)

Ongoing/Accruing Costs

• Interest on amounts drawn

• Annual MIP (HECM)

• Servicing fees (if applicable)

Fixed vs. Adjustable Rate Structures

• Fixed: Often paired with larger initial draws; less flexibility after closing.

• Adjustable: Enables line of credit and growth; rate can move over time.

How Costs Affect Net Proceeds

We model: Principal limit – (existing payoff + closing costs) = net available funds. You choose the payout mix (lump, monthly, LOC). Transparency prevents surprises.

Ways to Keep Costs in Check

• Make the property appraisal-ready (repairs, access, utilities on).

• Provide clean title/HOA docs early.

• Consider timing if limits/market conditions are shifting.

• Ask about lender credits where available.

Example Walkthrough (Plain Numbers)

We provide a one-page table showing gross proceeds, payoffs, fees, and net—plus scenarios for lump vs LOC vs hybrid, so the trade-offs are obvious