While we already know that borrowers are overwhelmingly choosing the fixed rate product, but what about the ARM product?
The latest in our Chart of the Day series looks at what type of payment plan reverse mortgage borrowers choose on adjustable rate reverse mortgages.
According to data from Reverse Market Insight, younger borrowers overwhelmingly choose the line of credit. In fact, less than 8% of HECM ARM borrowers in their 60s select one of the four monthly payment options (excluding LOC). The chart also shows as borrowers get older, the more they choose a modified term payment. For borrowers that reach 100 years old, 32% of the borrowers select a monthly payment option.
To see a larger image of the chart above, click here. For the full report check out the link below.