Reverse mortgage interest rates: quick answers
- What do current reverse mortgage rates mean?
- They are the rates offered this week on new HECM loans, shown below with the lender margin behind each one. Use them to compare options. They are not a rate offer or a rate lock.
- How are HECM interest rates set?
- An adjustable HECM rate is a published market index plus a lender margin. The index moves with the market. The margin is set when you close and stays the same for the life of the loan.
- What is the expected rate?
- The expected rate is a longer-term index (we track the 10-year Treasury) plus your margin. HUD uses it with the age of the youngest borrower or eligible non-borrowing spouse to set how much you can borrow. It is not the rate charged on your balance.
- Are reverse mortgage rates fixed or adjustable?
- Both exist. A fixed-rate HECM pays out as one lump sum at closing. An adjustable-rate HECM can pay out as a line of credit, monthly payments, a lump sum or a mix, which is why most HECM loans are adjustable.
- How does the line of credit rate work?
- On an adjustable HECM, the unused part of the line of credit grows at the loan’s current interest rate plus the annual FHA mortgage insurance premium rate. Money you draw accrues interest at that rate.
- What can today’s rates tell me?
- They show where the market is this week. Your own rate depends on the margin you choose, lender credits and closing costs, the loan program, and when your expected rate is locked.
HECM Reverse Mortgage Interest Rates
Rates as of Tue, Oct 27, 2026 · Updated every business day
- Rate index (1-year CMT, weekly)4.476%U.S. Treasury, week of Oct 19
- Expected-rate index (10-yr Treasury, weekly)5.125%U.S. Treasury, week of Oct 19
- 2026 FHA HECM limit$1,249,125Maximum claim amount
| Margin | Initial interest rate (APR) | Expected rate sets how much you can borrow | Max APR monthly-adjusting cap | Quote |
|---|---|---|---|---|
| 1.750% margin | 6.226%4.476% + 1.750% | 6.875% | 16.226% | Get my quote » |
| 2.000% margin | 6.476%4.476% + 2.000% | 7.125% | 16.476% | Get my quote » |
| 2.250% margin | 6.726%4.476% + 2.250% | 7.375% | 16.726% | Get my quote » |
| 2.500% margin | 6.976%4.476% + 2.500% | 7.625% | 16.976% | Get my quote » |
Fixed-rate HECM: pricing depends on your age and home value. Call us for today's fixed rate.
Rates as of Tue, Oct 27, 2026. Adjustable-rate HECM rates are variable. The interest rate equals the 1-year Constant Maturity Treasury (CMT) index plus the margin shown. Depending on the loan, it adjusts monthly or once a year. The maximum APR shown is for monthly-adjusting loans: the initial APR plus 10 percentage points over the life of the loan. Annually adjusting loans have a lower lifetime cap. APR for an adjustable-rate HECM line of credit does not include costs. Costs include an upfront FHA mortgage insurance premium of 2% of the home's value (up to $1,249,125), an annual mortgage insurance premium of 0.5% of the loan balance, an origination fee of up to $6,000, and third-party closing costs, which vary. The expected rate is the 10-year Treasury index plus the margin. HUD uses it with the youngest borrower's age to set how much you can borrow; it is not the rate charged on your balance. Rates are not a commitment to lend or a rate lock, and change with the market. Borrowers must be 62 or older, live in the home, and keep paying property taxes, homeowners insurance and maintenance, or the loan can become due. FHA-insured HECM; not endorsed by HUD or FHA. South River Mortgage, LLC, NMLS #1854524. Licensing information. Equal Housing Lender.
The next adjustment date is Tuesday, November 3, 2026. The projected index for next week is 5.00%, compared to this week’s index, which is 5.13%. This means that expected rates (10-year index plus margin) are projected to be between 6.75% and 7.50%.
Did you know?
South River Mortgage gets you the maximum cash out allowed by law on your HECM loan.
Try the reverse mortgage calculator.
Jumbo Reverse Mortgage Interest Rates
Learn More About Jumbo Reverse Mortgages
Read our full length article on jumbo reverse mortgages, where we do a deep dive on the jumbo programs currently available.
Reverse Mortgage Interest Rates – What You Should Know
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How Interest Rates Affect Your HECM Loan Proceeds
Interest rates can have a substantial impact on the amount of loan proceeds that a HECM borrower may be able to access.
The principal limit factor (PLF) is multiplied by the lesser of the home value or the lending limit to determine the principal limit, which is the maximum amount of money that can be advanced on a HECM loan.
Sample Principal Limit Factors for a 62-Year Old Borrower Across Various Reverse Mortgage Interest Rates
How reverse mortgage interest rates work
A HECM has two rates that do different jobs. The note rate is charged on the money you borrow. The expected rate sets how much you can borrow. How each one is set depends on whether the loan is fixed or adjustable.
| Feature | Fixed-rate HECM | Adjustable-rate HECM |
|---|---|---|
| How the rate is set | One rate, set at closing | Market index plus lender margin; adjusts monthly or annually within caps |
| Note rate (charged on your balance) | The fixed rate | Shorter-term index plus margin |
| Expected rate (sets how much you can borrow) | Same as the note rate | 10-year index plus the same margin |
| How you receive money | One lump sum at closing | Line of credit, monthly payments, lump sum or a mix |
| Line of credit growth | No line of credit | Unused credit grows at the note rate plus the annual FHA mortgage insurance rate |
Index plus margin: how HECM rates are set
An adjustable HECM rate has two parts. The index is a published market rate that moves week to week. The margin is the lender’s spread on top of the index. It is set when you close and does not change. Margins differ between lenders and loan options, and they often trade off against lender credits toward closing costs, so compare the margin and the costs together.
Expected rate vs. note rate
The expected rate is the 10-year index plus your margin. HUD’s principal limit tables use it, with the age of the youngest borrower or eligible non-borrowing spouse, to set your principal limit. A lower expected rate generally means a higher principal limit. The note rate (also called the initial rate) is what accrues on the money you draw. On a fixed-rate HECM the two rates are the same.
The HECM line of credit growth rate
With an adjustable HECM, the unused part of your line of credit grows each month at the same rate charged on the balance: the current note rate plus the annual FHA mortgage insurance premium rate. When rates rise, both the credit line growth and the interest on money you have drawn rise with them. Growth is not interest paid to you; it increases how much you can borrow later.
What today’s rates can and can’t tell you
The rates on this page show where the market is this week. They can’t tell you your own rate or proceeds, which depend on the margin you choose, lender credits and closing costs, the program, your age and home value, and when your expected rate is locked. HUD publishes the program rules on its HECM program page.
Or, if you prefer to see things graphically, you can see the relationship between HECM interest rates and principal limit factors.
At age 62 the PLF falls from 52.4% at a 3.000% expected rate to 27.7% at 7.875%.
Hover over or tap the chart, or use the arrow keys, to read each value.
Show the data table
| Expected rate | Principal limit factor |
|---|---|
| 3.000% | 52.4% |
| 3.125% | 52.4% |
| 3.250% | 52.2% |
| 3.375% | 51.3% |
| 3.500% | 50.4% |
| 3.625% | 49.6% |
| 3.750% | 48.7% |
| 3.875% | 47.9% |
| 4.000% | 47.0% |
| 4.125% | 46.2% |
| 4.250% | 45.4% |
| 4.375% | 44.7% |
| 4.500% | 43.9% |
| 4.625% | 43.1% |
| 4.750% | 42.4% |
| 4.875% | 41.7% |
| 5.000% | 41.0% |
| 5.125% | 40.3% |
| 5.250% | 39.6% |
| 5.375% | 38.9% |
| 5.500% | 38.2% |
| 5.625% | 37.6% |
| 5.750% | 37.0% |
| 5.875% | 36.3% |
| 6.000% | 35.7% |
| 6.125% | 35.1% |
| 6.250% | 34.5% |
| 6.375% | 33.9% |
| 6.500% | 33.4% |
| 6.625% | 32.8% |
| 6.750% | 32.2% |
| 6.875% | 31.7% |
| 7.000% | 31.2% |
| 7.125% | 30.7% |
| 7.250% | 30.1% |
| 7.375% | 29.6% |
| 7.500% | 29.1% |
| 7.625% | 28.7% |
| 7.750% | 28.2% |
| 7.875% | 27.7% |
Source: HUD HECM Principal Limit Factor Tables, effective October 2, 2017 (General Table, ages 62 to 99), listed as current on HUD.gov. Illustration only; your figures depend on your age and expected rate.
How Age Affects Your HECM Loan Proceeds
Higher ages provide additional proceeds on HECM loans, even at the same interest rates. Lower ages provide fewer proceeds on HECM loans.
The principal limit factor (PLF) is multiplied by the lesser of the home value or the lending limit to determine the principal limit, which is the maximum amount of money that can be advanced on a HECM loan.
Sample Principal Limit Factors for 6% Rates Across Various Ages
| Age | Rate | PLF % |
|---|---|---|
| 62 | 6% | 35.7% |
| 65 | 6% | 37.8% |
| 70 | 6% | 41.5% |
| 75 | 6% | 44.3% |
| 80 | 6% | 48.8% |
| 85 | 6% | 54.9% |
| 90 | 6% | 61.8% |
| 95 | 6% | 70.1% |
Selected ages and rates are provided from HUD 2017 PLF tables. This is just an illustration and may not accurately reflect today’s market rates. To calculate your numbers specifically, use a HECM Calculator.
At a 6.000% expected rate the PLF rises from 35.7% at age 62 to 71.6% at age 99.
Hover over or tap the chart, or use the arrow keys, to read each value.
Show the data table
| Age | Principal limit factor |
|---|---|
| 62 | 35.7% |
| 63 | 36.4% |
| 64 | 37.1% |
| 65 | 37.8% |
| 66 | 38.6% |
| 67 | 39.4% |
| 68 | 40.2% |
| 69 | 41.0% |
| 70 | 41.5% |
| 71 | 41.5% |
| 72 | 41.6% |
| 73 | 42.5% |
| 74 | 43.4% |
| 75 | 44.3% |
| 76 | 45.0% |
| 77 | 46.0% |
| 78 | 47.1% |
| 79 | 47.7% |
| 80 | 48.8% |
| 81 | 49.9% |
| 82 | 51.1% |
| 83 | 52.4% |
| 84 | 53.6% |
| 85 | 54.9% |
| 86 | 56.3% |
| 87 | 57.7% |
| 88 | 58.9% |
| 89 | 60.3% |
| 90 | 61.8% |
| 91 | 63.4% |
| 92 | 65.0% |
| 93 | 66.7% |
| 94 | 68.4% |
| 95 | 70.1% |
| 96 | 71.0% |
| 97 | 71.6% |
| 98 | 71.6% |
| 99 | 71.6% |
Source: HUD HECM Principal Limit Factor Tables, effective October 2, 2017 (General Table, ages 62 to 99), listed as current on HUD.gov. Illustration only; your figures depend on your age and expected rate.
What Determines My Interest Rate?
Frequently Asked Questions
What is the HECM rate lock?
HECM loans can have their expected rate locked for up to 120 days. This is valuable because it allows you to obtain the lowest interest rate available, at any point, during the application process.
South River Mortgage automatically sets up the expected rate lock and finds the lowest rate for you when calculating your principal limit.
What is the difference between the initial rate and the expected rate?
If you have an adjustable rate HECM:
- The initial rate is the rate that is used to calculate interest charges on your loan. The initial rate usually follows either the 1-Year CMT or the 1-Month CMT index.
- The expected rate is the rate that is used to determine the principal limit on your loan. The expected rate follows the 10-Year CMT index.
If you have a fixed rate HECM, then your initial rate and expected rate are the same.
What is the margin for an adjustable rate HECM loan?
The margin is the set number added to the index to determine your rate. The margin is a number that does not change, and it is generally between 1.5% and 3%.
Note that there is no margin for a fixed rate HECM.
What is an index for an adjustable rate HECM loan?
The index represents the market interest rates at the time. When your loan interest rate adjusts, it will adjust to the market interest rates (as long as they are below the caps on the loan).
For the initial rate, the 1-year Constant Maturity Treasury (CMT) or the 1-month Constant Maturity Treasury (CMT) index is used. For the expected rate, the 10-year Constant Maturity Treasury (CMT) is used.
Note that there is no index for a fixed rate HECM loan.
Why are most HECM loans adjustable rates?
Most HECM loans are adjustable rates because these are the only program that allows for the payment plan flexibility.
HECM fixed rates require all the cash to be taken at once, and in some cases, cash may be unavailable.
The HECM adjustable rate represents a better option for most people, as it allows them to draw cash as they need (allowing them to pay interest on only the cash they truly need).
What are the rate caps on the adjustable rate HECM?
The rate caps may vary, but they are usually 1% periodic (i.e. monthly or annual) cap and a 5% lifetime cap.
If you have an existing loan, check your HUD-1 settlement statement to verify the rate cap structure on your loan.
How frequently do the rates adjust on the adjustable rate HECM?
The most common adjustment frequency for adjustable rate HECMs is either monthly or annually. If you are not sure, you can check on your HUD-1 settlement statement to verify the adjustment frequency of your loan.
How much could you qualify for at today’s rates?
Adjust the age, home value, and mortgage balance to see an estimate based on your situation.
Calculate your eligibility
See how much of your home equity you could turn into tax-free cash, in about 30 seconds.
Illustrative estimate based on today's pricing for HECM and proprietary reverse mortgages, after estimated lender and closing costs. It is not a loan offer, and your amount depends on your state, appraisal and full application. Get a personalized quote.
Interest and mortgage insurance are added to a reverse mortgage balance each month. See how the balance and your remaining equity could change over time.