Rates for reverse mortgages are the same as rates for regular mortgages, and when you apply for a reverse mortgage, you should do everything you can to find the lowest rates you can. Even though shopping around takes time, you can help yourself by using the reverse mortgage calculators on one of the many reverse mortgage websites on the Internet.
You will have to pay interest on your reverse mortgage loan whether you get the money all at once, in monthly payments, or as advances on a credit line. In the US, reverse mortgage rates are tied to the US Treasury rate. Like all adjustable mortgage rates, reverse mortgage rates will change as the US Treasury rate changes.
The difference is the margin.
Because of this, if you save money on your reverse mortgage rates, it will be because lenders are trying to get your business. Their margin, which is the amount of interest they charge on top of the variable treasury-based reverse mortgage rate, will be different for each company. Rates can be changed anywhere from once a month to once a year by lenders.
Reverse mortgages with fixed rates
Fixed-rate reverse mortgages are the exception, but there are more of them now than there were a few months ago. One thing that isn't possible with a fixed-rate reverse mortgage is for the borrower to get their money in monthly instalments or through a line of credit. At the beginning of 2007, fixed reverse mortgage rates were around the low end of the six percent range. This did not include the lenders' margins.
Your income or credit history won't affect your fixed mortgage rate in any way. Even low-income seniors who have paid off their homes can get a reverse mortgage. In fact, reverse mortgages are mostly for people in this situation. For more information on Reverse Mortgage Brokers, go to http://www.i-reversemortgages.com/Reverse Mortgage Brokers/.
You can find out more about reverse mortgage rates by looking at both online and offline reverse mortgage brokers. Many reverse mortgage brokers have both websites and offices. Find the best online rate you can, then take it to the reverse mortgage lenders in your area and use it as a bargaining chip if you need to.
You can find a list of legitimate reverse mortgage lenders near you by searching on the National Reverse Mortgage Lenders Association website, entering the name of the state where you live, and then narrowing down the results to lenders in your area. All NRMLA lenders agree to follow a Code of Conduct, which means that they will treat you fairly during the process of getting a reverse mortgage.
