What interest rate applies to a reverse mortgage?

If you've tried searching, you've likely discovered that it's not easy to find rates on reverse mortgages. For traditional home loans, it's quite easy – you can turn to sources such as your local newspapers, well known surveys like Freddie Mac's, and big financial websites such as Yahoo! Finance. read more

Periodic Rate Adjustments refers to the periodic adjustment to the Fully Indexed rate. It applies only to Adjustable Rate Reverse Mortgage programs. Interest Rate Caps: Interest Rate Caps are a preset maximum Margin used to calculate the maximum Fully Indexed Rate of the reverse mortgage loan. read more

Adjustable Reverse Mortgage Interest Rates. The reverse mortgage rates are dependent on two factors: an index and a margin. When calculated together, these figures produce the adjustable rate applied to the borrower’s reverse mortgage. Here’s how it works. read more

These things are very tricky. Be sure to include their up-front fees in your calculation. Also, consider what your heirs will get or lose at the end. read more