Unfortunately our forecast came through. The average HECM borrower will have benefits that are $6,000 lower today compared to last week.  .
This week, all Treasury-based HECM’s with a margin of +154 or less will pay the HECM maximum benefits. Ditto for LIBOR-based HECM’s with margins of +100 or less. Using these margins, the initial note […]

Strange times! Even though lenders cannot yet insure loans closed using the forthcoming $417,000 national lending limit, HUD’s website no longer shows the ‘old’ existing HECM loan limits — it shows $417,000 across the board. So rely on Ibis software to find the ‘existing’ limits. And the 10-year Treasury rate rose today to 4.03% –  […]

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:

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 […]

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 […]