Rates are down, but not quite enough to trip a Principal Limit increase for loans using common margins. This week, all Treasury-based HECM’s with a margin of +174 or less will pay the HECM maximum benefits. Ditto for LIBOR-based HECM’s with margins of +128 or less. Using these margins, the initial note rate on a LIBOR HECM would be 8 bp less than that on a Treasury HECM.

The rates as of 11/11/08 are:

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