Fixed Rate vs. Adjustable Rate


All or Some

When you are preparing to apply for a reverse mortgage loan, you will be asked if you prefer a ‘fixed rate” or “adjustable rate” reverse mortgage. Choosing between the fixed rate and adjustable rate will greatly depend on your reason for seeking a reverse mortgage.

The interest rate ‘type’ can affect on how the proceeds will be disbursed.

Although the choice will be completely up to you, here are two examples to help you understand why one may work better for you than another:


Fixed Rate ~

If you are choosing the reverse mortgage to pay off an existing mortgage, you would likely choose the fixed rate where all proceeds are drawn in a lump sum ‘fixed rate’ mortgage.


Adjustable Rate ~

If you are choosing the reverse mortgage to use as supplemental income in either a line of credit or scheduled monthly payments then the “adjustable rate” mortgage is recommended.

This type of reverse mortgage offers more freedom as you can access the cash to have more on hand on a monthly basis or to save equity for an unexpected emergency.


As a licensed, experienced, reverse mortgage specialist, Carol will provide you with all of the options in a clear and concise manner to help you find the best solution for your personal needs.  When you are ready to discuss these options, just contact her directly at any time.


Personal Attention for Your Very Personal Decision

Call Carol now and she will offer all the time you need, at no charge, to make the right decision for yourself or your family.

(650) 453-3244