FREE Report: Learn how the HECM can help you live better in retirement. Click here to download.

Download a FREE BONUS report about the HECM. See the end of this article for more details.

Reverse Mortgage Glossary

Index

The index is a base interest rate that undergirds the initial interest rate (IIR) for a variable-rate HECM.

The fully-indexed IIR is composed of the index plus a margin charged by the lender. For example, if the index is 0.50% and the margin is 2.50%, then the fully-indexed IIR is 3.0%. If the index increases, then the IIR will increase as well.  

The most commonly used indices for the variable-rate HECM are the 1-Month LIBOR and the 1-Year LIBOR.

Note that there is no index for the fixed-rate HECM because the IIR is set for the life of the loan.

FREE Report: Get the straight deal on how a HECM really works.

An industry insider spills the beans on how a HECM reverse mortgage really works. Get the inside scoop! Enter your email address below and click 'Download'.

We respect your privacy and won't spam you. You can unsubscribe at any time.