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New data from IBIS Software shows the dive rates took when the markets crashed in the fall of 2008.
“When, and if, times return to normal, a LIBOR with a 2.50% margin will have a materially higher interest rate than the current fixed-rate HECM offerings,” said Jerry Wagner, CEO of IBIS.
If the 10 year LIBOR swap rate – which is used to calculate the principal limits – a table below the chart shows a 70 year old borrower will receive 25% less in PLFs with a 2.50% margin HECM will offer according to IBIS.
Chart: HECM Rates History
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