HECM Interest Rates (12/11/06)
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Initial interest rates for HECM reverse mortgages dropped 5 basis points this week folowing a 6bp decline last week. Rates for both the monthly- and annual- adjusting HECM mortgages are right at their 52-week average.
Rates for the Fannie Mae HomeKeeper reverse mortgage remain at the 52-week high mark of 8.75%.
| Reverse Mortgage Rates | |||||
|---|---|---|---|---|---|
| Product | This Week | Last Week | 52-Week Avg |
52-Week High |
52-Week Low |
| HECM Monthly Adjusting | 6.49% | 6.46% | 6.435% | 6.77% | 5.87% |
| [tag]HECM[/tag] Annual Adjusting | 8.09% | 8.06% | 8.035% | 8.37% | 7.47% |
| [tag]Fannie Mae[/tag] [tag]Homekeeper[/tag] | 8.75% | 8.75% | 8.478% | 8.75% | 7.75% |
[tag]Reverse mortgages[/tag] are specialized [tag]mortgage products[/tag] available only to [tag]senior citizen[/tag] homeowners. HECMs are the most popular type of reverse mortgage. Interest rates for both annual- and monthly- adjusting HECM loans are indexed to the one-year constant maturity [tag]US Treasury rate[/tag].
Under a reverse mortgage, the lender makes loan payments to the borrower and the loan is repaid when the house is sold or the homeowner dies. The monthly or annually adjusting interest rate determines how fast the loan balance grows.
Visit our reverse mortgage interest rate tool for further information and analysis.
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