§ 11-38-105 — Interest - periodic advances

Colorado § 11-38-105

• Jurisdiction: Colorado
• Title 11: Financial
• Art.: Reverse Mortgages

Text

(1) A reverse mortgage may provide
for an interest rate which is fixed or adjustable and may also provide for interest
that is contingent on the appreciation in the value of the home securing such
reverse mortgage.

(2) If a reverse mortgage provides for periodic advances to a borrower, such
advances shall not be reduced in amount or number based on any adjustment in the
interest rate on such reverse mortgage.

(3) The interest rate contracted for in any reverse mortgage shall not exceed
the loan finance charge rates provided by section 5-2-201, C.R.S., although the
effective rate may exceed those rates. Such interest rate shall be calculated on the
assumption that the reverse mortgage will be repaid according to the agreed terms
and will not be repaid before the end of the agreed term.

Legislative History

Source: L. 92: Entire article added, p. 940, � 1, effective April 23. L. 2000: (3) amended, p. 1872, � 106, effective August 2.