Chart of the Day: HECM Rates After the Market Crash

New data from IBIS Software shows the dive rates took when the markets crashed in the fall of 2008.

“When, and if, times return to normal, a LIBOR with a 2.50% margin will have a materially higher interest rate than the current fixed-rate HECM offerings,” said Jerry Wagner, CEO of IBIS.

If the 10 year LIBOR swap rate – which is used to calculate the principal limits – a table below the chart shows a 70 year old borrower will receive 25% less in PLFs with a 2.50% margin HECM will offer according to IBIS.

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Chart: HECM Rates History

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HECM Rates History

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