The truth of the matter is that the Reverse Mortgage Rate is the same for all lenders. Reverse Mortgage interest rates differ from Reverse Mortgage Costs, and must be compared between different lenders.
Although interest rates does not vary between lenders the margin can, which causes your rate to change. Let me explain. Let’s say the government rate today is 3%. Lender one charges 2% margin and lender 2 charges 3% margin. You always add the margin to the rate to get your effective rate. So lender one’s rate is now 3% plus 2% or 5% and lender 2 is 3% plus 3% or 6%.
You can see in this example that lender 2 is 1 per cent higher even though the same government rate is applied.
Always ask your lender what the margin is and compare lenders.
This is a home loan for senior citizens, and the government, Federal Housing Administration, wanted to reduce reverse mortgage scam.
Reverse mortgage rates do not change based on the seniors credit or financial reserves. These regulations were put in place by the government to make reverse mortgages a good choice for all house-rich, cash-poor seniors and boomers.
Let’s focus now on costs, as this is where lenders vary and can cost you or your heirs a great deal of money
You must get a Good Faith Estimate from your lender and compare at least 3 lenders. Now you know reverse mortgage interest rate are the same lets go look at the lenders. I know you will have questions. Please contact me and I promise I will help or send you in the right direction https://www.reversemortgagepros.ca/