Since it requires no monthly payments and allows you to remain in your home as long as you are able, a reverse mortgage can be a good option for homeowners over the age of 62 who are looking for a source of supplemental income. Many seniors find reverse home mortgages attractive because they offer a great deal of flexibility. However, with this increased flexibility comes a greater amount of decisions that borrowers must make. One of the choices you'll make when applying for a reverse home mortgage is whether or not you want an interest rate that changes every year or one that changes every month.

• Benefits of monthly adjustable rate reverse mortgage
  With a monthly adjustable rate, the primary advantage is that you'll be able to receive larger loan advances. When interest rates decrease, you'll benefit sooner than a borrower with an annually adjustable rate. Most borrowers with a Home Equity Conversion Mortgage choose a loan with a monthly adjustable rate.
  
• Benefits of annual rate reverse mortgage
  Borrowers who opt for an annual rate on their reverse home mortgages are often concerned about the amount of equity they'll have left for their heirs. They are concerned that interest rates may rise, and feel that the annual rate's cap offers greater protection against increased loan costs. However, when you are deciding between a monthly or an annually adjustable interest rate, it's important to realize that the amount of a reverse mortgage can never be greater than the total value of your home at the time of repayment.