The Home Equity Conversion Mortgage (HECM) is available in two types of interest rates: fixed or adjustable. The only time you can obtain a fixed reverse mortgage rate is if you choose the lump sum disbursement option. If you decide this option is not for you, you will have the choice of many different disbursement options in an adjustable rate.

Fixed Reverse Mortgage Rate Benefits

• Fixed rates are the lowest they have ever been!
• The fixed interest rates on reverse mortgages are comparable to traditional loans!
• You have access to the most money at the funding of your loan.
• The terms of your reverse mortgage can never change.

Adjustable Reverse Mortgage Rate Benefits

• Enjoy the flexibility of different disbursement options.
• The monthly tenure option gives you a monthly payment for as long as you live in the home.
• The money you receive could exceed the amount given in a lump sum throughout the life of the reverse mortgage.
• The credit line has a “growth feature” which extends additional credit based upon an assumed appreciation rate of your home.
• Your disbursement option can usually be changed through your reverse mortgage lender for a nominal fee.

In order to decide what type of interest rate is best for you on your reverse mortgage, it is important to consider your wants and needs. Your loan specialist will also help determine the pros and cons of both the fixed and adjustable rate depending on your situation. For more information, contact us at contactus@reversemortgagecalculator.com.