According to a recent survey of reverse mortgage lenders, the HECM Annual Adjustable (rate adjusts annually instead of monthly) is just about extinct. Less than 1% of all originations are Annual products.
The Annual product has never been popular because the extra interest that gets charged on that product compared to the Monthly more than outweighs the stability benefit that comes from an interest rate that adjusts less frequently.
Plus, with the rate on the HECM Fixed product now within a few points of the expected rate on the HECM Monthly, the need for a HECM Annual is basically nill.
Given that the cost of keeping an extra program on the books at a lender is not high, the product probably won’t be done away with completely but don’t be surprised if it gets pushed off the list of programs quoted in calculators.