In March, we explored the difference between Home Equity Conversion Mortgage (HECM) “expected rates” and “note rates” and why most reverse mortgages depend on these two interest rates. In April, we specifically focused on expected rates. We showed that when expected rates increase and round up to the next 1/8% (0.125%), the principal available to a prospect is typically reduced by an average of 0.6% (of the home’s value).

In the month since my last rate update was published, expected rates increased 39 basis points (0.39%), which rounds to 3/8%, or 3 principal details ⇒

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