Interest charged on a Reverse Mortgage

The interest on a reverse mortgage is adjustable and is tied to readily
available market indexes. The initial rate is determined at loan closing and
adjusts either monthly or annually. Interest charges do not affect your monthly
payments and you are only charged interest on your loan balance, which consists
of the cash you have received and the financed closing costs. See the first
page of our website for current rates.

Interest Rate Options:
The Monthly Adjustable option is based on the 1- year Treasury Bill Index and a margin (currently 1.5%). The lifetime rate cap is 10 points above the initial rate.

Monthly Adjustable: 1 Yr. T-Bill + 1.5%
Lifetime cap = 10% above start rate no monthly or annual cap

The Annual Adjustable option is based on the 1-year Treasury Bill Index and a margin (currently 3.1%). The Annual Adjustable Rate does not change by more than 2 points per year and the lifetime rate cap is 5 points above the initial rate.

Annual Adjustable: 1 Yr. T-Bill + 3.1%
Lifetime cap = 5% above start rate Annual cap = 2%

Call 1-888-973-8377 to speak with a Reverse Mortgage Counselor to how much you can receive from a reverse mortgage and what the interest rates are.

Visit Reverse Mortgage News for the updated weekly adjustable interest rates.

Till next time, have a blessed day...