What is the interest rate on an FHA Reverse Mortgage?
You have two options, a Fixed Rate Reverse Mortgage or an adjustable interest rate based on a financial index plus a fixed margin. Since this is a government insured loan program there is less risk involved to the bank so rates are generally less than non-insured loans. The Fixed Rate is decided by the prevailing market conditions while the adjustable rate use the LIBOR (London InterBank Over-counter Rate) as the index.
