Not at all. The truth is that closing costs average only about 1% more than that of a regular FHA mortgage on the same property. If you compared the reverse mortgage to many other conventional mortgages, the reverse mortgage could actually be lower in cost due to the fact that conventional mortgages can charge more than the 2% origination fee allowed on all reverse mortgages.
The cost of a reverse mortgage compares to the average cost of selling your home. When you consider the cost of then purchasing a new home, it’s not even comparable.
Additionally, if a reverse mortgage allows you to stay in your home with no monthly payments for even five years, instead of going into an assisted living facility or nursing home, it more than pays for itself.