Do All Reverse Mortgage Holders base Their Interest Rates On The LIBOR System?
No. Reverse mortgage holders have at least three different systems to select from to base their interest rates upon. The way that the interest rate is determined by the lender is really a mute point to the borrower. The important thing the borrower needs to worry about is the interest rate they will personally be charged. Each banking or lending institution will lend money at a different rate or cost. It is up to the consumer to shop around for the best deals prior to committing to a loan. It is always in the best interest of the consumer to check with several companies before deciding to stick with one.
