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Are HECM Reverse Mortgages Fixed-Rate or Adjustable Rate?
Are HECM Reverse Mortgages Fixed-Rate or Adjustable Rate?

They can be either, but fixed-rate mortgages are available only when the borrower elects to draw all of the proceeds at the outset, with none of it reserved for possible future use. This may be appropriate in some circumstances, including where the HECM is used to purchase a house, or to pay off a sizeable amount of existing debt. HECMs used by borrowers electing to receive monthly payments, and/or to reserve a credit line for possible future use, carry adjustable rates.