Reverse Mortgage Rates - Effective thru 9/11/06
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Reverse mortgage rates continue their trend downward in the most recent week:
| Reverse Mortgage Rates | ||
|---|---|---|
| Product | This Week | Last Week |
| HECM Monthly Adjusting | 6.53% | 6.57% |
| [tag]HECM[/tag] Annual Adjusting | 8.13% | 8.17% |
| [tag]Fannie Mae[/tag] [tag]Homekeeper[/tag] | 8.75% | 8.75% |
| [tag]Financial Freedom[/tag] | 8.92% | 8.95 |
[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 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 [tag]interest rate[/tag] 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.
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