The 10-year Treasury rate averaged 2.66% last week – lowest rates since the early 1950’s. So this week all Treasury HECM’s with a margin of +290 or less will be paying the maximum benefits. Ditto for LIBOR-based HECM’s with margins of +261 or less. We’re in territory where the Principal Limit is maxed out and the SFSA is the only factor moving with rates. Lower rates mean less money since lower rates give higher SFSA’s. Here’s how benefits will change this week for the average HECM borrower.

The rates as of 12/9/08 are:

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