On the surface, this sounds like an easy question. Everyone wants a reverse loan with a fixed rate, right? So how do you actually know if the correct choice is the fixed rate or the adjustable rate? Which program makes the most sense for you? Here are a few facts needed to help make your decision.
1. You have a mortgage that needs to be paid off that will consume most of the funds you are going to receive from your reverse mortgage.
2. You have a remodel or repair to your home that will be expensive and uses up a lot of your equity draw.
3. Buying a vacation home, automobile or a motorhome that will use up a good portion of your equity that is available.
4. By combining the above items you may be able to total most of your available draw.
As soon as your loan closes, you have drawn the money and interest starts accruing. If you don\’t have a use for the funds received from your reverse mortgage, your are just accruing interest for no reason.
What if you decide that you don\’t want all the equity at once? You may consider the alternative and look into the reverse mortgage with rate that adjusts.
You can get more reverse mortgage information or read other articles written by David Prulhiere Like \”Pros and Cons of an Adjustable Rate Mortgage\” by visiting redwood reverse mortgage. For a limited time, get the free report titled: \”Five Essential Things to Know Before Getting a Reverse Mortgage\”.
