Reverse Mortgage Interest Rates


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.

How Interest Rates Work


The Home Equity Conversion Mortgage (HECM) is available in both fixed rates and adjustable rates. It is required to take a full draw at closing if you obtain a fixed rate reverse mortgage.  If you have a large payoff, this might be the best option for you. If you do not need all the money available to you, you can set up a line of credit, monthly payments, a lump sum or a combination of these with an adjustable rate reverse mortgage.


Fixed Reverse Mortgage Rate Benefits

  • Fixed interest rates on reverse mortgages are comparable to traditional loans!
  • You have access to the most money after the funding of your loan.
  • Fixed rates can provide security in knowing the rate will never change over the life of the loan.

Adjustable Reverse Mortgage Rate Benefits

  • Enjoy the flexibility of different disbursement options with a line of credit, monthly payments, a lump sum or a combination.
  • Interest is only charged on funds that have been withdrawn.
  • Your disbursement option can usually be changed through your reverse mortgage lender for a nominal fee.

Which Type of Interest Rate Is Right for You?


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.

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