The HECM Libor or ARM is an adjustable rate reverse mortgage. The rate is based on the one month LIBOR or London Interbank Offered Rate. It adjusts monthly. It gives the borrower the option to take the available funds as tenure payments, term payments, a lump sum or a line of credit. The credit line option also has a growth rate so anything left in the line of credit is growing and giving the borrower access to more funds over time. Also, the borrower is only charged interest on what has been spent and not what is in the credit line. The fixed rate forces the borrower to take everything in a lump sum. For this reason many people choose the ARM so they can have the credit line and accrue debt slower.