What type of interest rate can I expect to pay?
Until recently all reverse mortgages
were adjustable rate loans tied to the
US Treasury index. With the increased
demand for reverse mortgages customers
are also requesting that different
interest rate options be available. In
response, recently a Fixed Rate reverse
mortgage was made available. This is an
excellent option for customers that want
to know exactly what their loan will
cost over time. In
addition to the the new fixed rate
option, additional indexes have also
been made available for the variable
rate loans. In addition to the One Year
Treasury bill, customers can also choose
to have their loan tied to the LIBOR
(London Inter-Bank Offered Rate)
index. We
encourage you to call a Legacy Reverse Mortgage loan professional to discuss current rates and how the different options can effect the amount of funds you can expect to receive. |
