[Rick Lee]

$3k closing costs on $120k is VERY reasonable. Closing costs are usually 2-3% of loan amount, so $3k is right in line. You don't specify what that $4k is. Title insurance sounds like a scam for a reverse mortgage, but if it's required by the lender, then the rate is regulated by the state and it's the same for everyone - X% of loan amount. I don't know why there'd be mortgage insurance on a reverse mortgage, since the only risk to the bank comes toward the very end of the loan. But it's not a scam. You can always shop elsewhere. If you need a reverse mortgage, chances are you're already pretty bad with money, so I'd not go calling the bank names just yet.