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 – October 15, 2008

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: 


Technorati Tags: Reverse Mortgage,HECM,FHA,HUD,Rates

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.