Fixed Rate Vs Adjustable Rate Reverse Mortgages
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adjustable rate reverse mortgages, ARM's, fixed rates March 12th, 2008We were curious to see if the fixed rates would really have been a better deal throughout the years for borrowers based on this historical information compared to a Fixed Rate at today’s low interest rates.
Being the age I am and having more than 32 years experience in the mortgage banking industry, I always choose fixed rate mortgages for my own financing needs. When the first fixed rate reverse mortgages came out, we received a lot of phone calls from borrowers who were very interested in also getting fixed rate financing. We recently wanted to see if the historical averages of the adjustable rates supported this fixed rate preference. After all, the adjustable rate reverse mortgages offer more options to borrowers as far as how they can receive their funds, they are starting at a lower interest rate right now and they give the borrower more cash in almost every instance. We were curious to see if the fixed rates would really have been a better deal throughout the years for borrowers based on this historical information compared to a fixed rate at today’s low interest rates.
Tags: adjustable rate reverse mortgages, ARM's, fixed rates
