This Week's Reverse Mortgage Rates: September 9, 2009

This week’s reverse mortgage rates are below. The rates are effective for the week beginning September 9, 2009. As the HECM CMT is no longer being offered, we will no longer report its rates.

APR:

HECM LIBOR 225: 2.501

HECM LIBOR 250: 2.751

HECM LIBOR 275: 3.001

HECM LIBOR 300: 3.251

Expected Rates:

HECM LIBOR 225: 5.85

HECM LIBOR 250: 6.10

HECM LIBOR 275: 6.35

HECM LIBOR 300: 6.60

The rates for the HECM Libor fell over a tenth of a point this week, a nice development after two weeks of nearly unchanged results. This week’s rates are only good through September 14, 2009.

This Week's Reverse Mortgage Rates: September 1, 2009

This week’s reverse mortgage rates are below. The rates are effective for the week beginning September 1, 2009. The HECM CMT will no longer be offered.

APR:

HECM LIBOR 225: 2.509

HECM LIBOR 250: 2.759

HECM LIBOR 275: 3.009

HECM LIBOR 300: 3.259

Expected Rates:

HECM LIBOR 225: 5.98

HECM LIBOR 250: 6.23

HECM LIBOR 275: 6.48

HECM LIBOR 300: 6.73

The rates for the HECM LIBOR this week remained almost the same as last week, rising by one hundredth of a point. As the HECM CMT will no longer be offered, we will no longer report its rates.

This Week's Reverse Mortgage Rates: August 25, 2009

This week’s reverse mortgage rates are below. The rates are effective for the week beginning August 25, 2009.

APR:

HECM CMT 300: 3.44

HECM CMT 325: 3.69

HECM CMT 350: 3.94

HECM LIBOR 225: 2.516

HECM LIBOR 250: 2.766

HECM LIBOR 275: 3.016

HECM LIBOR 300: 3.266

Expected Rates:

HECM CMT 300: 6.48

HECM CMT 325: 6.73

HECM CMT 350: 6.98

HECM LIBOR 225: 5.97

HECM LIBOR 250: 6.22

HECM LIBOR 275: 6.47

HECM LIBOR 300: 6.72

Rates fell this week for both the HECM CMT and the HECM LIBOR. The expected rate for the HECM LIBOR fell over two tenths of a point. The expected rate for the HECM CMT fell just under two tenths of a point. It is great to see the rates declining at such a dramatic rate again.

Reminder: The HECM CMT will cease to be offered on September 1st. This is the last week we will list the rates for the HECM CMT.

Breaking News: Bank of America Releases Fixed-Rate Product

On Wednesday night, Bank of America officially introduced its new fixed-rate HECM. The reverse mortgage product, a Fixed HECM 5.56, will be added to Bank of America’s current product offering of the Monthly Libor 225, Monthly Libor 250, Monthly Libor 275, Monthly Libor 300, and the Annual CMT 600. Bank of America also added new disclosures to their application packages. From now on, all application packages for Bank of America loans will include:

- HECM Reverse Mortgage Product Disclosure

- Important Disclosure: Your Payment of Property Charges

- General Questions Regarding HECM Reverse Mortgage Loans

Included in Fixed-Rate Packages Only:

- Truth in Lending Disclosure

- Home Mortgage Disclosure Act (HMDA)

The Bank of America fixed rate product has been highly anticipated for some time, and will hopefully help lower the procesing times for fixed rate loans throughout the industry.

More information can be found in the official press release: 2009-8-18-fixed-rate-release

This Week's Reverse Mortgage Rates: August 18, 2009

This week’s reverse mortgage rates are below. The rates are effective for the week beginning August 18, 2009.

APR:

HECM CMT 300: 3.47

HECM CMT 325: 3.72

HECM CMT 350: 3.97

HECM LIBOR 225: 2.523

HECM LIBOR 250: 2.773

HECM LIBOR 275: 3.023

HECM LIBOR 300: 3.273

Expected Rates:

HECM CMT 300: 6.67

HECM CMT 325: 6.92

HECM CMT 350: 7.17

HECM LIBOR 225: 6.20

HECM LIBOR 250: 6.45

HECM LIBOR 275: 6.70

HECM LIBOR 300: 6.95

The APRs and expected rates for both the HECM CMT and the HECM LIBOR declined this week. While rates for the HECM LIBOR have yet to fall to the level they were at earlier this month, the decline in expected rate of five hundredths of a point will still be nice for borrowers. The rates for the HECM CMT are the same as they were the week of August 4th.

Reminder: The HECM CMT will cease to be offered on September 1st.

This Week's Reverse Mortgage Rates: August 11, 2009

This week’s reverse mortgage rates are below. The rates are effective for the week beginning August 11, 2009.

APR:

HECM CMT 300: 3.49

HECM CMT 325: 3.74

HECM CMT 350: 3.99

HECM LIBOR 225: 2.526

HECM LIBOR 250: 2.776

HECM LIBOR 275: 3.026

HECM LIBOR 300: 3.276

Expected Rates:

HECM CMT 300: 6.77

HECM CMT 325: 7.02

HECM CMT 350: 7.27

HECM LIBOR 225: 6.25

HECM LIBOR 250: 6.50

HECM LIBOR 275: 6.75

HECM LIBOR 300: 7.00

While the APR for both the HECM CMT and the HECM LIBOR remained mostly unchanged from last week, the expected rates for the HECM LIBOR and HECM CMT rose again this week. The increase was fairly significant, amounting to a tenth of a point on the HECM CMT and slightly more than a tenth of a point on the HECM LIBOR.

Reminder: The HECM CMT will cease to be offered on September 1st.

This Week's Reverse Mortgage Rates: August 4, 2009

This week’s reverse mortgage rates are below. The rates are effective for the week beginning August 4, 2009.

APR:

HECM CMT 300: 3.49

HECM CMT 325: 3.74

HECM CMT 350: 3.99

HECM LIBOR 250: 2.779

HECM LIBOR 275: 3.029

HECM LIBOR 300: 3.279

Expected Rates:

HECM CMT 300: 6.67

HECM CMT 325: 6.92

HECM CMT 350: 7.17

HECM LIBOR 250: 6.39

HECM LIBOR 275: 6.64

HECM LIBOR 300: 6.89

Rates for the HECM LIBOR and HECM CMT rose again this week, though the APR for the LIBOR declined. However, the rate of increase in expected rates was lower this week than it has been in past weeks.

Reminder: The HECM CMT will cease to be offered on September 1st.

This Week's Reverse Mortgage Rates: July 28, 2009

This week’s reverse mortgage rates are below. These rates are effective for the week beginning July 28, 2009.

APR:

HECM CMT 300: 3.47

HECM CMT 325: 3.72

HECM CMT 350: 3.97

HECM LIBOR 250: 2.785

HECM LIBOR 275: 3.035

HECM LIBOR 300: 3.285

Expected Rates:

HECM CMT 300: 6.62

HECM CMT 325: 6.87

HECM CMT 350: 7.12

HECM LIBOR 250: 6.31

HECM LIBOR 275: 6.56

HECM LIBOR 300: 6.81

Rates for the HECM LIBOR and HECM CMT rose again this week, though the APRs for both products declined. The expected rate for the HECM LIBOR rose by a tenth of a point this week, while the expected rate for the HECM CMT rose by seven hundredths of a point. One would hope that the rates will stop rising soon.

This Week's Reverse Mortgage Rates: July 21, 2009

This week’s reverse mortgage rates are below. These rates are effective for the week beginning July 21, 2009.

APR:

HECM CMT 300: 3.48

HECM CMT 325: 3.73

HECM CMT 350: 3.98

HECM LIBOR 250: 2.786

HECM LIBOR 275: 3.036

HECM LIBOR 300: 3.286

Expected Rates:

HECM CMT 300: 6.55

HECM CMT 325: 6.80

HECM CMT 350: 7.05

HECM LIBOR 250: 6.21

HECM LIBOR 275: 6.46

HECM LIBOR 300: 6.71

Expected rates for the HECM LIBOR and HECM CMT rose dramatically this week, increasing by over a tenth of a point for each. This occured despite the fact that the APR for the LIBOR declined.

Reverse Mortgage Glossary – Part 2

Part of 2 of our reverse mortgage glossary, focusing on the second half of the alphabet of some basic reverse mortgage terms. Early posts will focus on terms for beginners, but later posts will become more advanced. The glossary will then be posted on our website.

Mortgage Terminology Part 2:

LIBOR –London Interbank Offered Rate – An international index determined on the basis of the worldeconomy and widely used for ARM loans in the United States.

Mortgage Servicer – handles reverse mortgage after it is closed; esnures terms of reverse mortgage are kept by both sides.

Principal Limit- The total loan proceeds available at origination from the reverse mortgage.

Principal Residence – The dwelling where the borrower maintains his or her permanent place of abode and spends the majority of the calendar year. The borrower may have only one Principal Residence at a time.

Processor – Person that handles reverse mortgage process between time of application and closing.

Refinance – the process of paying off one loan with the proceeds from a new loan secured by the same property.

Settlement – See “Closing.”

Title – A legal document establishing the right of ownership.

Title Search – A check of public records to ensure that a person is the legal owner of a property and that there are no liens or other claims outstanding on the property.