HECM Saver Interest Rates
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Last Updated: February 7, 2012 |
Fixed Rate (Standard) | Fixed Rate (Saver) | HECM libor 2.25 Margin (Standard) | HECM libor 2.50 Margin (Saver) |
|
Current Rates |
4.50% |
4.50% |
2.51 |
2.76 |
| APR (Inc. Insurance & Fees) |
5.98% |
5.95% | **see below | **see below |
|
Index |
N/A |
N/A |
0.261 |
0.261 |
| Margin | N/A | N/A | 2.25 | 2.50 |
|
Monthly Servicing |
$0 |
$0 |
$0 |
$0 |
|
Lending Limit |
$625,500 |
$625,500 |
$625,500 |
$625,500 |
|
Payment Plans |
|
|||
| Cash Lump Sum |
Yes |
Yes | Yes | Yes |
| Line of Credit |
n/a |
n/a |
Yes | Yes |
| Monthly Payment Plan |
n/a |
n/a |
Yes | Yes |
| Combination |
n/a |
n/a |
Yes | Yes |
Total Interest Rate charged to a reverse mortgage is the Margin + Index + Monthly Mortgage Insurance of 1.250%
* Fixed Rate APR ran with $250,000 loan amount including Mortgage Insurance Premium
** Tenure or Line of Credit Plan: Assume the youngest borrower was 72 years old when you opened your Plan
and you had an outstanding balance of $10,000 at the beginning of the Draw Period with an initial rate of 8.37%. If you took no other advances or payments and the rate increased as rapidly as possible so that the rate was 10.37% in the second year, 12.37% in the third year and 13.37% (5.0% above an assumed initial rate of 8.37% -- the maximum Annual Percentage Rate) in the fourth year and remained at the maximum rate, the minimum payment that would be due at the end of 13 years (based on the life expectancy of the youngest borrower) would be $51,517.55.