Until recently, there was a choice of a monthly LIBOR adjustable or a Fixed rate product for reverse choices. Now a third type of loan has been added that should help seniors skittish about the adjustable. Instead of the possibility of changing on a monthly basis, the Annual LiBOR will only change every 12 months as the index changes and there is a cap put in place to prevent large raises. The annual cap is set at no more than 2% above the existing rate with a lifetime cap of 5% above the start rate.

This means that if you chose the 2% start rate, then the maximum lifetime cap would be set at no more than 7%. This is much better than the monthly LIBOR. Not all lenders are supporting this new addition so if you are in need of a reverse, look at what is being quoted and ask questions if only shown one type of adjustable.