Bank of America Discontinues LIBOR 275

Bank of America announced last week that it was discontinuing offering the LIBOR 275 reverse mortgage product, leaving Bank of America offering only the LIBOR 225 and the LIBOR 250. The change can be seen in light of recent legislation (and proposed legislation) to ensure that borrowers are not pushed into loans with unfavorable terms by brokers seeking more compensation. It will be extremely interesting to see if other lenders follow suit.

This Week's Reverse Mortgage Rates: January 19, 2010

This week's reverse mortgage rates are below. The rates will be effective from January 19, 2010 through January 25, 2010.

APR:
HECM LIBOR 225: 2.483
HECM LIBOR 250: 2.733
HECM LIBOR 275: 2.983

Expected Rates:
HECM LIBOR 225: 6.08
HECM LIBOR 250: 6.33
HECM LIBOR 275: 6.58

Although APRs remained the same this week, expected rates fell significantly, falling for the second straight week.

Next week's rates will be reported on Monday.

This Week's Reverse Mortgage Rates: January 12, 2010

This week's reverse mortgage rates are below. The rates will be effective from January 12, 2010 through January 19, 2010.

APR:
HECM LIBOR 225: 2.483
HECM LIBOR 250: 2.733
HECM LIBOR 275: 2.983

Expected Rates:
HECM LIBOR 225: 6.17
HECM LIBOR 250: 6.42
HECM LIBOR 275: 6.67

Although APRs continued to remain basically unchanged this week, expected rates finally fell a little bit. While the change is not enough to make up for the rapid rise in expected rates in the last few weeks, hopefully it is beginning of a larger downward trend in rates.

With Martin Luther King Day coming up on Monday, January 18, it is important to note that these rates apply through Tuesday, January 19.

A Work in Progress

The Reverse Mortgage Minute is currently in the process of undergoing a redesign. As such, there may be fewer posts for the time being, but we look forward to returning bigger and better than ever.

This Week's Reverse Mortgage Rates: January 5, 2010

This week's reverse mortgage rates are below. The rates will be effective from January 5, 2010 through January 11, 2010.

APR:
HECM LIBOR 225: 2.481
HECM LIBOR 250: 2.731
HECM LIBOR 275: 2.981

Expected Rates:
HECM LIBOR 225: 6.23
HECM LIBOR 250: 6.48
HECM LIBOR 275: 6.74

While APRs remained unchanged this week, expected rates continued their meteoric rise into the new year. Expected rates are up over 1 point this week, with a dramatic rise of nearly 3 points from 2 weeks ago.