California Reverse Mortgages by your Sacramento Reverse Mortgage Provider

Say Good Bye To Fixed Rate Reverse Mortgages

Fixed Rate Reverse Mortgage are about to be a thing of the past. HUD is looking at getting rid of the fixed rate reverse mortgage since there is a higher chance of the loan being higher than the home value at the borrower’s death.

The fixed rate product has been around for years and provides the borrowers a guaranteed interest rate for the life of the loan. Current rates are just under 5% where as the HECM Libor rate starts at around 3% but it can adjust up by 10 points getting to the 13% range.

HUD looks like they will leave the HECM Fixed Saver which offers the borrower less money with lower cost and a rate just above 5%. If you know someone that is considering a reverse mortgage they should take action before February if they might want the guaranteed of a fixed rate and the most money available.

If you have any questions call me at 916-207-1879

Jeffrey Bangerter