All Adjustable Rate loans have a low "teaser" rate in the beginning, but too often the borrower does not understand that, and they think it will stay the same for the life of the loan. Depending on how the loan is structured, it might change annually, semi-annually or even monthly as is the case with a Line-of-Credit. If the borrower is a senior on a fixed income, they may find themselves unable to afford the increased payments. If they are fortunate to have savings, they might start drawing down on their cash reverses and possibly deplete their cash reserves. A reverse loan should be considered in this situation before they run out of money or enter into default with their Lender.
Adjustable Rate Mortgages
August 31, 2023
Lorraine Jones
I have been sharing information on my personal blog for over 20 years about reverse loans and in the last 21 years since I have been a Reverse Loan Consultant, I have experienced multiple changes in the FHA HECM program and encountered various situations with my clients who applied for the loan.
My personal blog has covered many topics seniors face as they age and I have shared their experiences and their reasons for utilizing the loan while providing up-to-date information about reverse mortgages and other areas of interest.
Please visit my website for more details and informational pieces and do share my website with others.
https://www.reverseloanconsultant.com/
