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 – September 23, 2008

This week, all Treasury-based HECM’s with a margin of +202 or less will pay the HECM maximum benefits. Ditto for LIBOR-based HECM’s with margins of +139 or less. Using these margins, the initial note rate on a LIBOR HECM would be 87 bp less than that on a Treasury HECM.

But, before you switch to offering a HECM+200, note that today the 10-year Treasury CMT rose to 3.82% — if this holds, the benefits from a HECM+200 will fall two notches next week. That represents $8,000 less for the average HECM borrower!

The one-month Treasury actually had a negative return on Wednesday. It’s yield was 7 basis points which is less than transaction.  The rates as of 9/23/08 are:

image

 

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.