(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.
If a reverse mortgage provides for periodic advances to a borrower, such advancesshall not be reduced in amount or number based on any adjustment in the interest rate on such reverse mortgage.
The interest rate contracted for in any reverse mortgage shall not exceed the loanfinance 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.
Source: L. 92: Entire article added, p. 940, § 1, effective April 23. L. 2000: (3) amended, p. 1872, § 106, effective August 2.