Types of Reverse Mortgage loan plans

 

The interest rate on most Reverse Mortgages is adjustable, based on an index such as the 1-year T-Bill rate or 6 Month LIBOR, plus a margin.

 

With an adjustable-rate Reverse Mortgage, there is no risk of losing the home due to an interest rate jump, because there are no payments, and the terms are fixed no matter what happens to rates.

 

However, some consumers are more comfortable with a fixed rate and there are some fixed rate plans available.

 

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