Reverse-Mortgage-Truth.com

The following are today’s reverse mortgage interest rates for the most popular reverse mortgage products:

HECM Reverse Mortgage rate: 3.13% (Index is the 1 Year CMT at 1.63% plus a margin of 1.5%)

Fixed rate Reverse Mortgage - HECM: 6.05% to 6.81% (depending on the lender)

Independence Plan 360 jumbo reverse mortgage: 6.28688% (Index is the 6 month LIBOR at 2.68688 plus a margin of 3.6%)

Independence Plan 210 jumbo reverse mortgage: 4.78688% (Index is 6 month LIBOR at 2.68688 plus a margin of 2.10%)

Cash Account Advantage jumbo reverse mortgage: 6.21% (Index is 6 month LIBOR at 2.71% [rounded] plus margin of 3.5%)

Interest rates are not an APR and do not include closing costs. Please contact your California reverse mortgage lender for a quote.

The following are today’s reverse mortgage interest rates for the most popular reverse mortgage products:

HECM Reverse Mortgage rate: 3.10% (Index is the 1 Year CMT at 1.6% plus a margin of 1.5%)

Fixed rate Reverse Mortgage - HECM: 5.74% to 6.81% (depending on the lender)

Independence Plan 360 jumbo reverse mortgage: 6.21438% (Index is the 6 month LIBOR at 2.61438 plus a margin of 3.6%)

Independence Plan 210 jumbo reverse mortgage: 4.71438% (Index is 6 month LIBOR at 2.61438 plus a margin of 2.10%)

Cash Account Advantage jumbo reverse mortgage: 6.13% (Index is 6 month LIBOR at 2.63% [rounded] plus margin of 3.5%)

Interest rates are not an APR and do not account for closing costs. Please contact your reverse mortgage lender for a quote.

Financial Freedom, the reverse mortgage subsidiary of mortgage lending giant Indy Mac Bank, has dramatically increased the interest rate on its fixed rate reverse mortgage.

As many brokers discovered recently when they updated their Reverse Mortgage Analyzer (RMA) software with Financial Freedom, the leading lender has bumped their fixed-rate reverse mortgage interest rates from the mid 5% range up to 6.81% (rate current as of Friday).

Other reverse mortgage banks are still offering the fixed rate reverse mortgage below 6%, though their rates have recently been increasing too.

With all the recent turmoil in the credit markets, it is no wonder that lenders are tightening their belts and increasing the rates that they offer to consumers. As their balance sheets bleed red ink and their stock prices drop, lenders are forced to make up their losses wherever and however that they can. So they have turned to their reverse mortgage programs to find more profit. As such, even the adjustable rate reverse mortgage programs have seen an increase in the margins – the profit margin – to the lender.

A few months ago, a 1% margin added to the treasury bill rate was common for the FHA Home Equity Conversion Mortgage (HECM). Today, a 1.5% margin is standard. This situation is likely to continue, and perhaps even get worse, until banks are able to recover. And that is not likely to happen until the real estate market recovers – a turning point in the future whose timing is anyone’s guess.

The following are today’s reverse mortgage interest rates for the most popular reverse mortgage products:

HECM Reverse Mortgage rate: 2.85% (Index is the 1 Year CMT at 1.35% plus a margin of 1.5%)

Fixed rate Reverse Mortgage - HECM: 5.79% to 6.81% (depending on the lender)

Independence Plan 360 jumbo reverse mortgage: 6.13938% (Index is the 6 month LIBOR at 2.53938 plus a margin of 3.6%)

Independence Plan 210 jumbo reverse mortgage: 4.63938% (Index is 6 month LIBOR at 2.53938 plus a margin of 2.10%)

Cash Account Advantage jumbo reverse mortgage: 6.040% (Index is 6 month LIBOR at 2.54% [rounded] plus margin of 3.5%)

Interest rates are not an APR and do not account for closing costs, click here for a Reverse Mortgage Quote