Reverse Mortgage Interest Rates
Interest rates on reverse mortgages are either adjustable, or fixed.
An adjustable reverse mortgage interest rate is determined by a financial index that fluctuates with the market. Typically, the One Month or Annual LIBOR index is used and a margin is added to the index to determine your interest rate for the month. It is important to get the lowest available margin so you will have the lowest interest.
How Fixed Reverse Mortgage Interest is Set
The lender typically sets the fixed rate reverse mortgage depending on market conditions. Your fixed rate is locked at closing and is set for the life of your loan. As you are not required to make monthly mortgage payments with a reverse mortgage, the interest is added to your loan balance.
To find current reverse mortgage interest rates, contact David Chee or get started with a free, customized quote.Request a Quote Online