Reverse Mortgages Home What are Reverse Mortgages? Who is eligible for them? Types of Reverse Mortgages Why choose Reverse Mortgages Paying back Reverse Mortgages Questions to ask lenders Their disadvantages Reverse Mortgage requirements Origination and MIP Fees Dealing with closing costs The process of getting one What is the HECM? Appraisal Fees Servicing Set-Aside Appraisal Fees   Appraisal fees are an important consideration when deciding to get a reverse mortgage loan. Appraisal fees are required by the federal government before a loan can be made. The money for the appraisal comes out of your pocket and determines, to some extent, whether you can get a reverse mortgage.   What is an Appraisal Fee? The appraisal fee is a requirement for assigning a current market value to your home. Appraisers generally charge $300-$400 to appraise your home. However, they do not only place a value on your home, but they also make sure that there are no major structural problems, such as a bad foundation, a leaky roof, or damage from termites.   Federal regulations require that your home must be structurally sound and comply with all home safety codes, even those created after the house was built, in order for you to receive a reverse mortgage.   Repairs If the appraiser uncovers property defects, you are required to hire a contractor to complete the repairs that the appraiser recommends. After the repairs have been completed, the same appraiser must be paid for a second visit to ensure that the repairs have been completed satisfactorily. The cost of the repairs can be financed in the loan and completed after the reverse mortgage is made on your behalf. The follow-up examination can cost anywhere from $50-$75.   Appraisal fees and potential required repairs may be a major consideration in your search for a reverse mortgage. Major repairs could take a large chunk from the money available with your reverse mortgage.