Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

How is the interest collected on a reverse mortgage?

April 26, 2017collected reverse mortgage

0

10 Posted

How is the interest collected on a reverse mortgage?

1 Answer

0

Posted

The interest on a reverse mortgage is adjustable and is tied to readily available market indexes. The initial rate is determined at loan closing and adjusts either monthly or annually. Interest charges do not affect the amount of your monthly payments and you are only charged interest on your loan balance, which consists of the cash you have received, the financed closing costs, and the interest that has accrued.