General World News

The month in reverse mortgage rates: June 2024

Almost all Home Equity Conversion Mortgages (HECMs) originated today utilize the adjustable-rate mortgage (ARM) option. In stark contrast to traditional mortgage lending, the reverse mortgage business is dominated by ARMs, representing over 99% of Federal Housing Administration (FHA)-insured reverse mortgages originated today.

This is due, in part, because borrowers want to control how much they borrow and when they borrow from an open line-of-credit that is growing in their favor.

Fixed-rate HECMs are closed-end loans that only allow a single disbursement to the borrower at the time of loan funding. Consider that only 12 fixed-rate HECMs were originated details ⇒

BusinessMediaguide.Com portal received this content from this noted web source: HousingWire.Com