The average HECM borrower will see their initial benefits increase by $ 2,500 tomorrow.

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The average HECM borrower will see their initial benefits increase by $ 2,500 tomorrow.  The volatility continues.

Rates rose materially last week so the average HECM borrower will see their initial benefits decrease by $ 2,500. But today, rates fell which may mean that benefits will rise again next week? Lots of volatility!

The average HECM borrower will see their initial benefits decrease by $ 2,500 on June 9, 2009. A LIBOR+250 gives  7.9% more than a T+350: 

The average HECM borrower will see their initial benefits decrease by $7,500 tomorrow. Rates have become unglued.  A 65-year old baby boomer will get 25% less tomorrow than they got at the beginning of the year! And rates took a material jump today so next week will show another drop in benefits.

As predicted, today the average HECM borrower will see their initial benefits increase by $2,500. After tomorrow, the next rate change will not be until Wednesday, May 27th — Ibis won’t predict that far in advance, BUT today the 10-year Treasury is up by nine basis points. If that holds, this week’s $2,500 gain will go […]