Are there fixed rate reverse mortgage loans?


There certainly exist fixed rate reverse mortgage loans. Reverse mortgage products can be fixed or adjustable loans, pretty much as regular mortgage loans. When you are shopping for a reverse mortgage, you are again looking for the lowest interest rate.

However, even when two fixed rate reverse mortgage loans, say HECMs, have identical interest rates and amounts and the age of the seniors taking them may be the same as well, you can't be sure which one will come out cheaper. Lenders should show different TALC scenarios, as per Truth-in-Lending laws, to see how much the fixed rate reverse mortgage loan will cost to you.

Fixed rate reverse mortgages are less flexible and rarer.

There is one major restriction for fixed-rate reverse mortgages - the credit is advanced in one lump sum and the borrower usually cannot schedule tenure payments. The fixed mortgage rate has nothing to do with income and credit qualifications.

Fixed Rate HECM Reverse Mortgage

Fixed rate reverse home loans haven't been around long.

The traditional HECM is an adjustable rate mortgage - credit lines and monthly installments are the most preferred ways for seniors to receive reverse mortgage funds.

The fixed rate HECM reverse mortgage product is a recent development; it has similar maturity compared to the traditional HECM:

  • repayment of the loan is not required while the senior inhabits their property and taxes and insurance are paid;
  • full ownership is retained for the life of the loan.
Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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