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Jane Bryant Quinn Changes Her Tune on Reverse Mortgages

As I was preparing for a reverse mortgage seminar, a financial planner asked me why Jane Bryant Quinn is against reverse mortgages. I told him that in the past, she would recommend it only as a last resort, but with program changes such as lower cost for the line of credit or monthly payment options and more safety features, she is now very positive on reverse mortgages. She talks about how the program is being used as strategic retirement planning tools.

According to an interview with TIME Magazine on May 16, 2016, Bryant said “As soon as you’re 62, you can take a reverse mortgage. Here the idea is you take the mortgage, but you don’t take a large sum. You take a credit line against the value of your house. And if you never borrow, other than for closing costs – … the amount of credit available increases every year by the same rate you are paying on your reverse mortgage.

I sent my new financial adviser friend copies of Jane’s articles and we began a discussion on how the reverse mortgage can work for his clients. His first client had a specific need, money! She had a small HELOC to pay off and is able to generate a monthly income of $500 that will continue as long as she lives in her home and in addition, a $65,000 line of credit with the unused portion continuing to grow.

Client number two wanted to move closer to her daughter. It was perfect for the family as she could help with the young children and get valuable support as she ages. She felt it was impossible as her daughter lived in an area with higher priced homes than what she could sell her home for. I recommended she use the HECM for purchase reverse mortgage loan so she could afford that more expensive home.  Her Real Estate agent in Reno Nevada was able to sell her home and purchase her new home in Danville, California.

And client number three wanted to keep his home but couldn’t afford the large mortgage payments. Refinancing to the reverse mortgage pays off his existing mortgage and he wouldn’t have any more monthly payments and provides a set aside for property taxes and homeowner’s insurance. It changes a situation from stress to peace of mind.

As Jane and other professionals recognize how reverse mortgages help people to not outlive their money and enjoy their lives with less financial stress, the program will continue to gain in popularity.

 

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Reverse Mortgage Specialist: Maggie O’Connell At Your Service!

Reverse Mortgage Specialist, Maggie O'Connell

I began originating Reverse Mortgages in 1993. It excited me then and I’m even more enthusiastic about the program today. Origination services include the FHA Insured Home Equity Conversion Mortgage or HECM and the HomeSafe Jumbo Reverse Mortgage. My customers are my focus and I am the point of contact, communication, explanations, discussions, co-ordinations and smooth closings. You could call it a one stop shop! I am very proud of the reviews my past clients have written and strive to make every client pleased with the process and results. And the results are always gratifying as lives are improved and retirement is made easier with the wonderful tool call a reverse mortgage.  I hope I can help you!
Offering HECM & Jumbo Reverse Mortgages in all 50 United States! “I’ll put my 23 years of Reverse Mortgage experience and expertise to work on your behalf!” Contact Me!

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What is a reverse mortgage and is it right for you?

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A Reverse Mortgage or Home Equity Conversion Mortgage (HECM) is home loan designed for older homeowners. It allows borrowers to tap into the equity in their home without having to make monthly mortgage payments. The loan balance is repaid when the last remaining homeowner leaves the home permanently, sells the property or passes away. Homeowners maintain title, pay their property taxes, homeowner’s insurance and keep up the maintenance and the reverse mortgage lender has a lien against the home, just like conventional mortgages.

Home equity is the most valuable asset for most Seniors and Boomers. By tapping into home equity and receiving tax free funds to boost retirement income, homeowner’s are able to live a more comfortable and financially secure life.

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Reverse Mortgage for home purchase makes sense for Seniors.

Are you aware that you can purchase a new home using a reverse mortgage? It’s a great way to ‘right-size’, move closer to family or services or own a more energy efficient
home. Here’s how it works: Your down payment is 40 to 50% of the home price (up to the FHA maximum value of $625,500) and the HECM reverse mortgage will take
care of the remaining funds needed. The beauty is, you don’t have to make mortgage payments! When the last homeowner leaves the home permanently or you sell, the balance is due which includes the accrued interest and mortgage insurance over the years. So if you sell your home, you can use the proceeds for the down payment
and put the rest of the money in the bank for additional retirement savings. You are the owner and can sell at any time or live there for the rest of your life with only having to pay the property taxes, homeowner’s insurance and HOA dues. Thought you were stuck in your old house forever!!! Think again! Click below to learn more.

Reverse Mortgage HECM for Purchase Guidelines

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Who do you want to coordinate your reverse mortgage?

So you’re considering a reverse mortgage because you have decided that life is too short. You have equity in your home and you should be enjoying life more and not living like a pauper. Where do you start? What is the first step? How do you choose the person who will help you through the process? You certainly don’t what to be led down the wrong path by some newbee in the industry who doesn’t know what they are doing. You thought one of those big companies who advertise on TV are the way to go, after all, they are big! But after talking to someone on the other side of the country who wants to sign you up and pass you along the processing assembly line, you realize that’s not for you.

What if you found someone who will work with you from start to finish, who represents a federally chartered bank, who has many years experience originating HECM’s and hundreds of raving fans? Someone who will meet you personally if you are in Northern
Nevada, the California Bay area or the California gold country. Someone who will give you the personal attention you need in such an important transaction as a reverse mortgage.

I believe you have just found her…

How may I help you?      Contact Maggie O’Connell

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Reverse Mortgage Information

Getting a reverse mortgage is an important decision and understanding how reverse mortgages work is the first step.

Find out how Reverse Mortgages work

The reverse mortgage loan process involves many steps explained here:

What is involved in the HECM reverse mortgage loan process?

Revere Mortgage counseling is required before starting the loan process and in California must be completed prior to signing the application.

Find a Reverse Mortgage Counselor

Get answers to your reverse mortgage questions:

Reverse Mortgage Frequently Asked Questions (FAQ)

Learn the various interest rate options and guidelines:

Reverse Mortgage Interest Rates

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Reverse Mortgage Annual Adjusting Interest Rate Option

 

The HECM adjustable reverse mortgage interest rate options include a monthly adjusting and the ‘new’ annual adjusting option.  The benefit of the annual option are lower lifetime caps on the interest rate plus it includes an annual cap. The monthly option has a 10 point cap above the start rate and no annual cap.

With the annual adjusting option, the interest rate is fixed for one year at a time and the adjustment the next year cannot increase more than 2 points. The lifetime cap is 5 points above the start rate. The key advantages of the HECM variable interest rate are that a line of credit or monthly payment is allowed.  That is not available with the fixed rate as a lump sum must be drawn.  The line of credit growth is a definite advantage as the growth in the credit line can be quite substantial over time. The increase in the LOC is the same accrual rate as on the loan balance.  It is based on the current rate plus the mip rate.  I will provide an amortization schedule that projects this growth and you will be very pleased with the compounding growth of available funds.

To receive an analysis for this new option Call Maggie at 800-489-0986

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Reverse Mortgage for Home Purchase has benefits for homebuyers and Realtors alike

Reverse Mortgages are a helpful financial tool that can be used to purchase a home. The HECM Purchase Loan is for those who don’t want to make mortgage payments and also want to minimize the cash requirement for the purchase transaction. The down payment requirement is calculated based on age of youngest borrower or non-borrowing spouse, home value up to the maximum claim amount limit and current expected interest rate. Request down payment calculation

Realtors, buyers and sellers can have confidence in the HECM Purchase program by understanding clear guidelines and starting the process correctly from the beginning.  The key to a successful transaction is a Reverse Mortgage Originator  coordinating the transaction from start to finish.

To qualify, you must be at least 62 years old, but if you have a younger spouse, you can take advantage of the new non-borrowing spouse rules for the FHA Insured HECM Reverse Mortgage. The down payment is higher than traditional mortgages for the simple reason that you don’t have to make mortgage payments, so the equity in your home is used to pay the loan back after you leave the home permanently. Because no payments are made while you live in your home, you must have equity from the beginning. The younger you are, the more money you need to contribute to the transaction because of your longer life expectancy. The income qualification is lower than traditional mortgages because there are no mortgage payments added to your debt ratio. With the new HECM Financial Assessment guidelines in place, you must show a good payment history for past housing & debt expenses. It’s easy to find out if you qualify and how much house you can afford by giving Maggie a call.
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New Rules Protecting Non-Borrowing Spouses

To qualify for a reverse mortgage, one must be at least 62 years.  In the past, when there was a younger spouse, the couple did not qualify for the HECM.  While it’s best for both husband and wife to be on title and borrowers on the loan, there are now protections for younger spouses.   It is to be evaluated seriously as the younger spouse must deed off title.  It is important to talk to an attorney to  properly set up the deed or living trust so the non-borrowing spouse (NBS) can be quickly added to title if the ‘borrowing’ spouse passes.  The younger spouse has the right to remain in the home indefinitely during what’s called a deferral period if all the requirements are met. The surviving spouse must transfer the home into their name and become the legal owner within 90 days of death. Any funds remaining in the reverse mortgage account will not be available to the younger spouse.

In order for the Deferral Period to apply to a Non-Borrowing Spouse, the NBS must:
1. Have been the spouse of the borrower at the time of loan closing and remain married for the duration of the borrowing spouse’s lifetime;
2. Have been properly disclosed at origination and specifically named as a Non-Borrowing Spouse in the loan documents; and
3. Have occupied, and continue to occupy, the property as the Principal Residence.

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Reverse Mortgage Financial Assessment

HUD has issued a reverse mortgage financial assessment for HECM reverse mortgage borrowers. HECM lenders are to evaluate the borrower’s willingness and capacity to timely meet their financial obligations and to comply with the mortgage requirements. Those mortgage requirements include paying property taxes, homeowner’s insurance and keeping up home maintenance.

Preliminary qualifying questions include: 

Do you file an income tax return with the IRS?

Are you currently employed?  What are your sources of income? What is your total income?

Do you have assets that could be used as monthly income such as savings, CDs, 401k, IRA, Annuity etc.
What are your monthly obligations?  (Installment debt, Revolving/credit card debt)

Have you experienced any hardships that may have affected your credit?

Have you ever co-signed on a loan?

Have you filed for bankruptcy in the past 2 years?

Have you been or are you in foreclosure?  If yes, was it an FHA loan?

Have you had any tax liens or judgments in the past 2 years?

Are you current on your taxes and homeowner’s insurance?

What are your monthly or annual property taxes and homeowner’s insurance?

Do you have PUD or HOA dues, what is the amount and is it current?

Do you have any other real estate such as an investment property or second home?             Is there an FHA loan on the other property?

To Read the HECM Financial Assessment and Property Charge Guide, Click Here

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Jumbo Reverse Mortgages are available in California & multiple states

  • This new private, non-FHA Jumbo Reverse Mortgage called “HomeSafe,” is available in these states: · Arizona · California · Colorado · Connecticut · Florida · Hawaii · Illinois · New Jersey · Oregon ·Pennsylvania · Rhode Island · South Carolina · Texas
  •  Maximum loan amount is $2.25 million
  • It has a fixed interest rate
  • There is no mortgage insurance premium
  • Borrower’s must draw all funds at closing, there will be no line of credit or monthly payment optionNon-FHA approved condos valued over $500,000 that pass the spot condo requirements will be eligible
  • Available for Reverse Mortgage for Home Purchase
  • New Construction is acceptable as long as the certificate of occupancy is issued prior to closing (HECM requires CO prior to application)
  • Reverse Mortgage Counseling is required. Two counseling sessions for California borrowers.
  • Financial Assessment must be completed.

Click Here to Be Informed When New Jumbo Reverse Mortgages Are Available.

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