HECM stands for Home Equity Conversion Mortgage. The most popular type of reverse mortgages are the HECM’s which are federally insured.
The HECM 100 loan stands for the interest rate margin. Usually the margin has been 150 basis point (1.5%). This 1-year US treasury rate is added to the margin to determine the interest charged on a reverse mortgage. Lenders came out with the HECM loans in 2007 that carried a 100bp (1.00%) margins. These are known as HECM 100 reverse mortgages.
Based on the Treasury Rate plus a margin of 100 basis points, the HECM 100 is a new product. The lower margin increases the Principal Limit or loan amount.
Ryan Kohl, Vice President
Express Capital Mortgage
1820 E Ray Rd
Chandler, AZ 85225
480-656-8347
