Reverse Mortgages

Most interest rates on reverse mortgages are indeed adjustable. Although, they are capped.

For details on the rates and caps, please see the following articles:

http://www.newretirement.com/Services/Jumbo-Reverse-Mortgage.aspx
http://www.newretirement.com/Services/Reverse_Mortgage_Fees.aspx

However, the Bank of New York does offer the Prime Advantage Fixed Rate Jumbo Reverse Mortgage -

This jumbo Reverse Mortgage product offers a fixed rate. This rate is determined by the bank, rather than an index. The rate does not adjust, it is fixed.

On July 26, 2007, the interest rate on the Prime Advantage Fixed Rate product was: 9.265% and that rate would remain fixed for the life of the loan.

There is indeed a fixed rate reverse mortgage.

Financial Freedom currently offers an FHA HECM fixed rate program, the current rate today (3/6/08) is at 5.54%. The rate uses prevailing rates and market conditions to set, and are actually fixed a few days before closing. I anticipate that in the very near future, they will fix it upon application.

The benefits of course are that the rate is fixed for the life of the loan. The drawback is that to get that rate, you must draw out all proceeds up front. This starts the interest accruing on the entire balance. If you plan on taking the proceeds as a monthly income or line of credit, youre better off in the monthly adjustable HECM. For those who need to use all the funds up front (paying off a high balance mortgage), this is a great program.

Hope that helps.

I am a Reverse Mortgage Specialist employed directly by Financial Freedom, a preferred lender here at New Retirement. I would be happy to answer any other questions you might have.

tfield@financialfreedom.com
8770632-7890

Tam :)