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Interest Rates

This option offers a set schedule of payments applied to the property determined by a rate of interest. The interest rate is one of the determining factors for the borrowers approved amount received from the equity within the home. Typically, the fixed "savor" rate option approves a larger amount of money to the borrower. The fixed rate generally helps borrowers with larger mortgages or those that would like to Use the money at their discretion.

The adjustable rate Reverse Mortgage is determined by an index and a margin which equals the interest rate (similar to a home equity line of credits rate of interest). The interest rate is one of the determining factors for the borrowers approved amount received from the equity within the home. The interest rate can increase or decrease based on the index, which can vary the amount of money applied to the home monthly. From the initial start interest rate there is a cap to the amount of interest applied to the property to prevent usury, an excess amount of interest charged to the borrower illegally. With the Adjustable Rate HECM Reverse Mortgage the borrowers are not required to receive all of the equity as a lump sum.

The borrowers are allowed to access the approved amount of equity in many different ways, to include:
- A monthly check for the rest of their life.
- A set schedule of monthly payments for a predetermined amount of years or months, with the remaining balance, if any, being placed into the credit line.

The Credit Line
The credit line is an account that the borrower can maintain with their lender which the borrower has full access to anytime, similar to a home equity line of credit. The equity is placed into a credit line account never to be altered by the lender, which will accrue at a fixed growth rate of interest, and will not be affected if the homes value increases or decreases .

If the borrowers sell the home, pass away, or all borrowers decide to leave the property claiming another residence as their primary home for 12 consecutive months, the remaining balance will be returned to the property. The Adjustable Rate Reverse Mortgage is typically for borrowers with little to no mortgage who do not want to access the full approved amount at one time. With Both products the fixed "savor" rate and the adjustable rate options, there are no monthly mortgage payment required. Borrowers can however make monthly payments, and those payments will be directly applied towards the principal mortgage balance, decreasing the amount of interest applied to the property.