Reverse Mortgage Rates - Effective thru 6/26/06
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[tag]Reverse mortgage[/tag] interest is payable only at the end of the loan - i.e. generally, when the home is sold or the homeowner(s) dies. There are no monthly loan payments so the interest rate paid is somewhat less of a direct concern as it is for a traditional home equity loan.
Still, interest on a reverse mortgage does accrue and compound, so it is still very important to know the rate you will be paying when the loan is taken and to monitor the rate as it adjusts over the course of the loan. The [tag]reverse mortgage interest rate[/tag] likely will be the most important determinant of how much unused equity remains at the end of the loan.
There is little interest rate competition among reverse mortgage lenders since rates are set according to uniform indices and margin factors. The underlying components of [tag]reverse mortgage rates[/tag] are described in this reverse mortgage rate comparison chart. The table below provides reverse mortgage rates for the current week:
| Reverse Mortgage Rates | ||
|---|---|---|
| Product | This Week | Last Week |
| HECM Monthly Adjusting | 6.63% | 6.54% |
| [tag]HECM[/tag] Annual Adjusting | 8.23% | 8.14% |
| [tag]Fannie Mae[/tag] [tag]Homekeeper[/tag] | 8.625% | 8.50% |
| [tag]Financial Freedom[/tag] | 10.53% | 10.41% |
A Few More Related Articles of Interest:
June 20th, 2006 at 5:34 pm
Does the borrower pay interest on the interest? How would you calculate an APR for such a product or does it fall into a different category as far as regulations?
[URL]http://www.saintlawrencemortgage.com[/URL]
June 20th, 2006 at 5:35 pm
http://www.saintlawrencemortgage.com
June 21st, 2006 at 12:38 pm
Yes interest is paid on interest. The Total Annual Loan Cost (TALC) is used in lieu of APR for reverse mortgages.