Interest rates are one of the biggest drivers of your reverse mortgage payout. Here is what to know about 2026 rates.
How do rates affect your reverse mortgage in 2026?
In 2026, your reverse mortgage rate shapes both how much you can borrow and how fast your balance grows. Because HUD's principal-limit factors fall as the expected rate rises, lower rates let you access more equity. The rate also determines the interest that accrues on your balance over time, since no payments are made. Rates change with broader market conditions and differ by lender and loan type. We never quote fixed carrier prices because they move, but a specialist can pull current numbers for you. Call 1-800-MEDIGAP for today's reverse mortgage rates.
Should you choose a fixed or adjustable rate?
Fixed-rate HECMs lock your rate but require taking all proceeds as a single lump sum at closing, which means interest accrues on the full amount immediately. Adjustable-rate HECMs let you choose a line of credit, monthly payments, or partial draws, so interest accrues only on funds you use, and the line of credit can grow over time. Many borrowers prefer adjustable rates for flexibility and the growing credit line, while a fixed rate suits those needing one large sum. The right choice depends on your goals. Call 1-800-MEDIGAP to decide.