Reverse Mortgage Adjustable Rates

READER QUESTION

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

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Bills.com Resident Expert
Dec 12, 2011
BILL'S ANSWER

No, some lenders do offer fixed rate reverse mortgage, which typically has a higher initial interest rate than an adjustable rate mortgage.  Please note that a fixed rate reverse mortgage only provides funds as an upfront lump sum payment while an adjustable rate reverse mortgage can provide your funds as a monthly payment, as a line of credit, and/or a lump sum payment.  For an adjustable rate mortgage, lenders typically use the treasury securities as the rate index 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. Get a reverse mortgage quote 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.

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