October 7th, 2008 |
by John |
published in
News, Rates, Reverse Mortgage
This week, all Treasury-based HECM’s with a margin of +186 or less will pay the HECM maximum benefits. Ditto for LIBOR-based HECM’s with margins of +121 or less. Using these margins, the initial note rate on a LIBOR HECM would be 187 bp less than that on a Treasury HECM.
The rates as of 10/7/08 are:
Sign […]
September 30th, 2008 |
by John |
published in
News, Rates, Reverse Mortgage
Unfortunately our forecast from last week came true. On Tuesday, September 30th, the average HECM borrower will receive considerably lower benefits. Yesterday, the 10-year Treasury rate plummeted today to 3.58%, last week’s average was 3.84%!It doesn’t appear that the 10-year Swap Rate changed much today.
This week, all Treasury-based HECM’s with a margin of +172 or […]
September 28th, 2008 |
by John |
published in
News, Rates, Reverse Mortgage
As a follow up to last weeks post about rates, Jerry from Ibis sent out an update which gives you a better idea of how the uncertainty in the market is affecting HECM rates. Ibis estimates that the 10-year Constant Maturity Treasury rate will go from 3.54% to 3.84%. The 10-year Swap rate could go […]
September 26th, 2008 |
by John |
published in
News, Rates, Reverse Mortgage
Jerry Wagner from Ibis sent out an interesting email about where rates might be headed… see below.
The HECM locked rate is as of the date the borrower signs the App.;
The HECM Principal Limit Factor lookup table use rates to the nearest one-eighths and
Today’s rates are good until Monday evening the 29th.
And looking at the first […]
September 23rd, 2008 |
by John |
published in
News, Rates, Reverse Mortgage
This week, all Treasury-based HECM’s with a margin of +202 or less will pay the HECM maximum benefits. Ditto for LIBOR-based HECM’s with margins of +139 or less. Using these margins, the initial note rate on a LIBOR HECM would be 87 bp less than that on a Treasury HECM.
But, before you switch to offering […]