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What Are the Mortgage Insurance Premiums on a HECM?
What Are the Mortgage Insurance Premiums on a HECM?

Borrowers pay FHA an upfront premium equal to either .5% of property value or 2.5%, depending on the size of cash draws upfront and in the first year. See What Are the Upfront Costs of a HECM Reverse Mortgage? The upfront premium is financed. Borrowers also pay a monthly premium on all HECMs equal to 1.25%/12, which is an add-on to the interest due. The premiums compensate FHA for the HECM risks it assumes.