Reverse Mortgage Adjustable Rates - The Bills.com Blog

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Reverse Mortgage Adjustable Rates

Question: Do all reverse mortgage products currently available to consumers have adjustable rates?

Answer: You are absolutely correct; all reverse mortgage products currently available to consumers have adjustable rates.

The reasons for this are somewhat complicated and mostly have to do with the secondary mortgage market and FHA and HUD rules. In the simplest terms, however, banks don't know how long the customer will have the loan(the term is based on when the borrower either vacates the property or passes away), so they don't have a fixed period for calculating their expected return. The interest rate is indexed to the One-year U.S.
Treasury Securities plus a margin

of one-and-one-half per cent (1.50%).
Lender origination fees are fixed by the FHA at 2% of the lending limit.

Bills.com makes it easy to compare mortgage offers and different loan types. Please visit the loan

page and find a loan that meets your needs.

I hope that his helps you make the right decision for your particular situation, but be sure to shop around and find a loan that meets your needs.

Also, make sure to get a free financial health check-up with Bills IQ!

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Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!

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