A reverse mortgage rate is no different from a traditional mortgage rate, and when you are applying for a reverse mortgage you should make every effort to find the lowest reverse mortgage rate you possibly can. While comparison shopping takes time, you can help your own cause by taking advantage of the reverse mortgage calculators available on one of the many reverse mortgage Internet web sites. You are going to have to pay interest on your reverse mortgage loan regardless of whether you receive your money as a single lump sum, in monthly installments, or as advances on a credit line. In the US, the reverse mortgage rate is tied to the US Treasury rate, and like all adjustable mortgages rates will fluctuate as it does. Because of this, any money you save on your reverse mortgage rate will be as a result of the competition among lenders.
Their margin which is the amount they charge in interest over and above the variable treasury-based reverse mortgage rate will vary from company to company. A fixed reverse mortgage rate is the exception to the rule, although they have become more available in recent months. One limitation on a fixed reverse mortgage rate is that the borrower must take his or her money in a single payment so monthly installments and lines of credit are not permitted. Fixed reverse mortgage rates, in early 2007, was hovering in the low end of the six percent range, not including the lenders' margins. You can get a better idea of reverse mortgage rates by researching both online and traditional brick-and-mortar reverse mortgage brokers. Most brokers have both websites and offices so find the best online rate you can, then take it to the reverse mortgage lenders in your area and use it as a negotiating tool if necessary. |
