HW Media connects and informs decision makers across the housing economy. Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. Moving the Housing Market Forward.
NewsRatesReverse Mortgage

Reverse Mortgage Rates – April 7, 2009

This week, only Treasury-based HECM’s with a margin of +280  or less can pay the HECM maximum Principal Limit. Ditto for LIBOR-based HECM’s with margins of +265 or less. Current margins are higher than these figures. This week fixed-rate HECM’s range from 5.81% to 7.250% so we explore the range of benefits.

Using this week’s rates, the first table shows max rates or margins before the next drop in the Principal Limit factor. The percentage drops in the table are for a 74-year old borrower (the HECM average). A 5.81% fixed-rate HECM gives 3.05% less than the maximum HECM benefit. A 5.93% fixed-rate HECM would give 4.4% less.

To be equivalent to a 5.81% fixed-rate HECM, a Treasury HECM would need a margin equal to or below 3.05%. Another example — to be equivalent to a T+300 HECM, a LIBOR HECM would need a margin equal to or below 2.90 %.





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.

Latest Articles

HW+ Member Spotlight: Tom O’Donoghue HW+

This week’s HW+ member spotlight features Tom O’Donoghue, owner at Reverse Loans Now. O’Donoghue has been in mortgage banking for more than 30 years and has been helping and committed to working with Senior Citizens for the last seven years. HW Media: What is your current favorite HW+ article and why? Tom O’Donoghue: How inflation could be a net benefit […]

Aug 12, 2022 By