*Applicable Mortgage Insurance and TALC (Total Annual Loan Costs) are not reflected.

Why are interest rates important when choosing the best reverse mortgage?

1.) The lower the expected interest rate, the maximum amount of proceeds are made available to the homeowner. (Principle Lending Limit)

2.) The better the index performs over time can relate to thousands of dollars of retained equity throughout the life of your reverse mortgage, meaning more inheritance for your children / heirs.

Why are your advertised rates much lower than my Bank or Credit Union?

All Reverse Mortgage Company has correspondent approval to offer a wide variety of government insured reverse mortgages. Our margins come from forward commitments secured by large banks, and these benefits are passed down to you.

If you would like an amortization schedule that projects how much interest you owe year by year please call.

Toll Free (888) 801-2762 Ext. 1 or complete our Secure Questionnaire

About Libor Index

LIBOR stands for "London Inter-Bank Offered Rate."  It is based on rates that contributor banks in London offer each other for inter-bank deposits.  From a bank's perspective, deposits are simply funds that are loaned to them.  So in effect, a LIBOR is a rate at which a fellow London bank can borrow money from other banks. Many types of reverse mortgage loans are indexed to the London Interbank Offering Rate. This index is used to set rates of a variety of different types of loans with adjustable interest rates.

In October of 2007, the U.S. Federal Housing Administration (FHA) ruled in favor of insuring ARM loans based on the one-year LIBOR index. At the same time, HUD also ruled to allow the one-month LIBOR to be used for the purpose of calculating adjustments to interest rates for monthly adjusting Home Equity Conversion Mortgage (HECM). Below is a chart of LIBOR rates for the last 10 years.  LIBOR loans normally have lower margin rates than CMT (constant maturity of U.S. treasuries)

About Treasury Index (CMT)

Many types of reverse mortgage loans are indexed to the Treasury. This index is an average yield on United States Treasury securities adjusted to a constant maturity of 1 year, as made available by the Federal Reserve Board.  Yields are interpolated by the United States Treasury from the daily yield curve. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market.