We will likely never see a week like this again. 10-year rates plummeted. In the colored tables below you can see the changes in benefits for the average HECM borrower (a 73-year old in a $250,000 home).  A Treasury HECM+200 will give $5,811 more tomorrow. A HECM+175 will give $197 less because the benefits were at the cap last week, and the new lower rates increase the service fee set-aside.

This week, all Treasury-based HECM’s with a margin of +218 or less will pay the HECM maximum benefits. Ditto for LIBOR-based HECM’s with margins of +190 or less. Using these margins, the initial note rate on a LIBOR HECM would be 15 bp more than that on a Treasury HECM.  The rates as of 11/25/08 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.