Reverse Mortgage Interest Rates

I get many emails and questions about reverse mortgage interest rates.

With a reverse mortgage, you are charged interest only on the proceeds that you receive. Most reverse mortgages charge a variable interest rate (although fixed rate products are entering the marketplace) that is tied to an index, such as the 1-Yr. Treasury Bill or the London Interbank Offered Rate (LIBOR), plus a margin that typically adds an additional one to three percentage points onto the rate you're charged. Interest is not paid out of your available loan proceeds, but instead compounds over the life of the loan until repayment occurs.

The HECM (Home Equity Conversion Mortgage) which happens to currently be the most popular Reverse Mortgage Product is based off the T-Rate. (Tresury Bill rate) plus a margin.

To give you an idea of the interest rate, for the week of July 16, 2007. The interest rate for the HECM was 6.00% (Monthly adjusting with 1.0 Margin) and 6.87 (Annual adjusting with 2.6 Margin).

It is important to understand what your rate will be before moving forward with a Reverse Mortgage. Call 1-888-973-8377 to speak with a Reverse Mortgage Specialist. They will be able to give you an updated interest rate at now charge or obligation. You can also email rates@rtgconsultants.com for current reverse mortgage interest rates.