Our Everbank AE (thanks Bob!), recently pointed out that some interesting information about HECM rates. The fixed HECM rate is currently 5.56% which is just above the expected rate floor for the HECM product. What this means is that the HECM Fixed Rate generates the same Principal Limit as the HECM 100, HECM 125 & HECM 150. When you factor in the lower service set aside, the borrower can actually get more benefit right now from the HECM Fixed Rate than they can from the HECM ARM products.

Sample Loan Comparison for a 70 year old borrower with a $200,000 home:

Keep in mind though, that the HECM Fixed Rate requires the borrower to take 100% of the proceeds as a lump sum at closing in order to get the published interest rate.  For pricing on HECM Fixed products for other payment plans, Bob said to contact him and he will work with the Secondary desk for a quote.

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