Interest rates for reverse mortgages fluctuate based on the economy. Historically, reverse mortgage interest rates have been between 3% and 6%. Like traditional mortgages, reverse mortgages are available as fixed- or variable-rate loans. Fixed interest rates tend to start higher than adjustable rates, but they’re more stable in the long run. The disadvantage of a fixed-rate loan is that proceeds must be awarded as a lump sum. If you’re more interested in regular payments to supplement your monthly income, you might prefer a variable-rate reverse mortgage. Variable interest rates change over time. While these changes may seem arbitrary, variable interest rates are generally based on an index and your lender’s margin. The base interest rate corresponds to a third-party market index, and the margin is a fixed percentage added on top by your lender. Reverse mortgage lenders typically add a margin between 1% and 3% to the base interest rate.