What a reverse mortgage costs in Hawaiʻi

What do you pay to take out a reverse mortgage?

You pay an origination fee, an upfront mortgage insurance premium paid to FHA, and closing costs such as appraisal and title. Counseling may also carry a fee. Most upfront costs can be paid from the loan, so you may not pay cash, but they still come out of your equity.

The CFPB lists (opens in a new tab) these:

The origination fee is set by federal rule (opens in a new tab), but lenders can charge less, and closing costs differ. The CFPB suggests talking to more than one lender and comparing.

How does the loan balance grow?

Each month, interest, a yearly mortgage insurance premium of 0.5% of the balance, and any servicing fee are added to what you owe. Because you make no monthly loan payments, that interest is charged on a growing balance, so the amount owed rises faster over time and the equity left in your home shrinks.

You can pay some or all of the interest if you want to slow that growth, but you don't have to. The loan is repaid later, usually when the home is sold — and you or your heirs never owe more than the home is worth when it's sold. More in the guide for families.

What if your Hawaiʻi home is worth more than the HECM limit?

A HECM is figured on your home's appraised value or the national HECM limit, whichever is lower. For 2026 that limit is $1,249,125. Many homes on Maui and Oʻahu are worth more, so the extra value above the limit doesn't raise what a HECM can reach. Other reverse loan types exist; compare them side by side.

How much you can reach also depends on the age of the youngest borrower and on interest rates, so the same home gives different amounts to different people. The estimate shows a rough range on screen, before it asks for any contact details.

Some lenders offer their own reverse mortgages for higher-value homes. They aren't HECMs, so FHA mortgage insurance and HECM rules don't apply, and their costs and terms differ. If you're offered one, ask for both in writing.

What do you still pay every year?

You keep paying property taxes, homeowners insurance (and flood insurance in a flood zone), any condo or association dues or ground rent, and upkeep. Falling behind on these can make the loan due. The lender reviews beforehand whether you can keep up, and may set aside part of the loan to pay taxes and insurance.

• Property taxes, on time.
• Homeowners insurance, and flood insurance if your home is in a flood zone.
• Condo or association dues and, on leasehold land, ground rent.
• Upkeep, so the home stays in good repair.

Falling behind on these can make the loan due. If the lender isn't sure you can keep paying them, it can set aside part of your loan in a set-aside account (a LESA) to pay taxes and insurance for you, which lowers the money available to you. CFPB: your rights and responsibilities (opens in a new tab).

What should you check before you sign?

Before you sign, talk to a HUD-approved counselor, which is required before you apply, compare more than one lender in writing, and don't buy anything else with the money because someone tells you to. After closing, you have three business days to change your mind. Call HUD at 800-569-4287 to find a counselor.

1. Talk to a HUD-approved counselor first. It's required before you apply, and the counselor walks through the costs with you. Call HUD at 800-569-4287 to find one. See reverse mortgage counseling.
2. Compare more than one lender, line by line, in writing.
3. Don't buy anything else with the money because someone tells you to — the FTC warns (opens in a new tab) you don't need an annuity or investment to get a reverse mortgage.
4. Know your right to cancel. After closing, you have three business days to change your mind.