This week, because of the floor used in finding Principal Limit Factors (PLF’s), all Treasury-based HECM’s with a margin of +156 or less will give the same maximum PLF’s as will all LIBOR-based HECM’s with margins of +88 or less. Using these margins, the initial note rate on a LIBOR HECM will be 57 bp less than that on a Treasury HECM. LIBOR HECM should have some traction!
Our prediction last Monday was correct. A monthly-adjusting Treasury HECM+150 will pay the average HECM borrower $2,750 more this week. That’s up $5,500 over the last two weeks.
Ibis software handles many different indices. The rates of today are:
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