A HECM reverse-for-purchase transaction combines buying and refinancing into one closing, so you pay title insurance, recording fees, and transfer taxes only once instead of twice. That single transaction cuts your overall closing costs significantly.
If you were to purchase a house, the cost savings is, you know, all the closing costs. With a conventional loan, you're going to be paying, even if you get a loan without an origination fee, you're still going to be paying for the title insurance. You know, there's closing costs, third-party closing costs that are on all purchase transactions. You might have county recording fees, you might have some transfer taxes, all those things. And on a reverse mortgage, in a single transaction, you have those same fees, but you don't have to do them twice. That's what is the whole point. Of a reverse for purchase transaction.
