This week, because of the floor used in finding Principal Limit Factors (PLF’s), all Treasury-based HECM’s with a margin of +147 or less will give the same maximum PLF’s as will all LIBOR-based HECM’s with margins of +76 or less. Using these margins, the initial note rate on a LIBOR HECM will be 70 bp less than that on a Treasury HECM. LIBOR HECM should have some traction!

A monthly-adjusting Treasury HECM+150 will pay the average HECM borrower $2,750 more this. And we bet this will rise another $2,750 next week.

Ibis software handles many different indices. The rates of Tuesday are:

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. Lenders use Ibis RMO — loan origination modules, and Ibis Quick Quote — bilingual consumer calculators for your website. We also provide Ibis RMA — a complete counseling package for HUD-Approved reverse counselors.

Technorati tags: Reverse Mortgage, News, HECM, Mortgage Rates, FHA