Phone: (800) 489-0986
Call or text: (916) 502-0359

Reverse Mortgage Interest Rate Options

The HECM adjustable reverse mortgage is a monthly adjusting rate. The rate cannot increase more than 5 points above the start rate.

The key advantages of the HECM variable interest rate are is the availability of a line of credit so funds can be accessed in the future.  The line of credit growth is a definite advantage as the growth in the credit line can be quite substantial over time. The increase in the LOC is the same accrual rate as on the loan balance.  It is based on the current rate plus the mip rate.  An amortization schedule will be provided that projects this growth and you will be very pleased with the compounding growth of available funds.

A lump sum draw is required with the HECM fixed interest rate. There is no line of credit with the fixed rate option.

To receive an analysis, Call Scott at 800-489-0986