Interest Rate of a Reverse Mortgage
Are all reverse mortgages calculated using the adjustable rate on interest? If so, why?
Are all reverse mortgages calculated using the adjustable rate on interest? If so, why?
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Not all reverse mortgages are calculated using the adjustable rate on interest. Some lenders do offer fixed rate reverse mortgage, which typically has a higher interest rate than an adjustable rate mortgage. Please note that a fixed rate reverse mortgage only provides funds as an upfront lump sum payment while an adjustable rate reverse mortgage can provide your funds as a monthly payment, as a line of credit, and/or a lump sum payment.