Discover Reverse Mortgage Rates - The Bills.com Blog

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Discover Reverse Mortgage Rates

Question: I'm in the process of doing a reverse mortgage. What is the difference between the fixed rate and the annual adjusted rate and also how it will ultimately affect my situation/future with respect to doing a reverse mortgage? Please respond ASAP as I am already in the process.

Answer: If you are getting a Reverse Mortgage, be sure to check out the articles on the reverse mortgage product and processat http://www.bills.com/reversemortgage

Until very recently, nearly all reverse mortgages used an adjustable rate to calculate the interest on the funds loaned to you during the course of the reverse mortgage. The fixed-rate reverse mortgage is a relatively new product being offered to seniors, which offers a stable rate, allowing seniors to better calculate how much they or their heirs will owe when they move out of the home or pass away.

Fixed-rate reverse mortgages

can have a slightly higher rate to start with than adjustable rate reverses. However, depending on market conditions, the adjustable rate could increase significantly, meaning that the fixed rate may be the better choice in the long run. It is impossible to say which is a wiser financial choice because we cannot accurately predict long-term market conditions.

However, the fixed-rate loan does offer more stability and less risk, so you may want to choose a fixed over an adjustable. First, you should read up on reverse

mortgages to arm yourself with as much information as possible; a good place to start is Federal Trade Commission’s reverse mortgage page.

Bills.com also offers a wealth of information about a reverse mortgage

You should then discuss the available programs with different lenders to find the best loan for your particular situation. I hope this information helps you Find. Learn. Save.

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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