When considering a Reverse Mortgage in times of increasing interest rates it is important to realize that the higher the interest rates (For example NOW) the lower the cash or line of credit you will receive.
There are two basic types of reverse mortgages, fixed and variable.
Fixed: This is a rate that will not change. The National Reverse Mortgage Lenders Association (NRMLA) lists average HECM fixed rates.
Variable: These consist of two components, an index and margin.
Index: This is the variable component determined by the market such as the 1-month LIBOR or 1-year LIBOR (London Interbank Offered Rate, the rate at which large world banks lend money to each other.
Margin: This is the rate added to the Index charged by the lender and is normally fixed.
Call Denver Mortgage Company Limited NOW at 720 951 3921. We will explain the process until you feel comfortable in your understanding. We will then provide an application at no charge and after obtaining some details of your current situation we will provide a comparison of three products for you. SEE THE REVERSE MORTGAGE SECTION OF OUR WEBSITE.