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% – that’s 33 basis points above last week’s average. if that rate holds this week, on Tuesday, October 21st, Treasury-HECM borrowers will see $5,000 to $6,000 in lower benefits.
This week, all Treasury-based HECM’s with a margin of +187 or less will pay the HECM maximum benefits. Ditto for LIBOR-based HECM’s with margins of +133 or less. Using these margins, the initial note rate on a LIBOR HECM would be 281 bp more than that on a Treasury HECM. Note that the 1-month, 6-month and 1-year LIBOR rates below are from Monday’s WSJ as proscribed by HUD in ML 2007-13.
The rates as of 10/15/08 are:
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.