This week, all Treasury-based HECM’s with a margin of +202 or less will pay the HECM maximum benefits. Ditto for LIBOR-based HECM’s with margins of +139 or less. Using these margins, the initial note rate on a LIBOR HECM would be 87 bp less than that on a Treasury HECM.
But, before you switch to offering a HECM+200, note that today the 10-year Treasury CMT rose to 3.82% — if this holds, the benefits from a HECM+200 will fall two notches next week. That represents $8,000 less for the average HECM borrower!
The one-month Treasury actually had a negative return on Wednesday. It’s yield was 7 basis points which is less than transaction. The rates as of 9/23/08 are:
Technorati Tags: Reverse Mortgage,HECM,FHA,HUD,Rates
Reverse Mortgage Rate Updates are brought to you by Jerry Wagner & Ibis Reverse Mortgage Software – The Industry Standard Since 1995. This is not just a slogan — six of the top 10 reverse mortgage originators plus NRMLA and the AARP use Ibis Software for their websites, retail and wholesale businesses.
