Reverse Mortgage Loan OptionsDifferent banks and lenders will have different reverse mortgage loan products. We have gathered some of the more common reverse mortgage home loan options.
- Fixed-Rate Home Equity Conversion Mortgage
A fixed-rate reverse mortgage will give you the peace of mind that your interest will always be known and will not jump up and down every month by locking you in at the rate for the lifetime of the loan and providing you 100% of the funds at closing.
- Adjustable-Rate Home Equity Conversion Mortgage
The adjustable rate reverse mortgage provides a lot more flexiblity and options. The loan allows borrowers the option of taking a lumpsum, monthly payments, line of credit or a combination of any of the previous 3. Adjustable HECM rates are typically a bit lower than the fixed-rate reverse mortgage loans.
- HECM Saver Reverse Mortgage
The saver HECM loan has lower upfront fees but does mean that the borrower will not be able to take out as much money than the mainstream reverse mortgage loans.
- Home Equity Conversion Mortgage for Purchase
If the property value has increased, refinancing may be a good idea to allow you to unlock more equity in the property.