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How are interest rates for the Reverse Mortgage determined?

April 26, 2017interest rates reverse mortgage

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How are interest rates for the Reverse Mortgage determined?

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For The Federal Housing Administration’s Home Equity Conversion Mortgage (which makes up the vast majority of reverse mortgages) you will be given a choice between a monthly adjustable rate and an annually adjustable rate. The rates are set and capped by Fannie Mae with a set margin over the one-year U.S. Treasury rate for monthly adjustable and a slightly higher margin above the one-year U.S. Treasury rate for annually adjustable rates.