CHANGE INTEREST RATES

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CHANGE INTEREST RATES

Post  Sun Shine on Tue Feb 05, 2008 10:17 am

What happens if the interest rates are alot lower than the ones on your reverse mortgage can you re-do the loan?

Sun Shine

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Re: CHANGE INTEREST RATES

Post  Ralph J on Fri Feb 08, 2008 3:30 pm

You first have to determine the type of loan you want;
Annual adjustable H.E.C.M. means that the rate will change once each year.
Monthly adjustable H.E.C.M. means that the rate will change once every month.
Choosing the fixed rate H.E.C.M. provides for better predictability of your overall costs

The interest rate on HECM Reverse Mortgage loans is typically adjustable. This means that the rate can both increase and decrease over time. The lender does not have control nor discretion over what the rate will be or how it will change over time. Some HECM Lenders offer fixed rate HECM Reverse Mortgages, but require upfront draws.

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