Reverse Mortgage Specialist: Maggie O'Connell At Your Service!
Choosing Maggie O'Connell to originate your reverse mortgage, assures you will have a quick and
smooth loan process, always know the status of your file, have the most competitive rates and terms and get accurate answers to all of your questions. Offering HECM & Jumbo Reverse Mortgages in all 50 United States!
What is a reverse mortgage and is it right for you?
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.
REVERSE MORTGAGE NEWS
NEW HECM OPTION: The Flexible Fixed HECM Reverse Mortgage
In the past, if you wanted a fixed rate reverse mortgage, you had to take all of the available funds as a lump sum of cash. With the Flexible Fixed HECM, reverse mortgage borrowers can have the agility of multiple payment options with the stability of a fixed rate.
Borrower’s can receive monthly payments or line of credit to access funds at any time and interest will accumulate at a fixed rate. To receive an analysis for the Flexible Fixed option click here.
Read more about the new Flexible Fixed HECM at
Maggie’s Reverse Mortgage Blog
REVERSE MORTGAGE FINANCIAL ASSESSMENT COMING SOON
The FHA Home Equity Conversion Mortgage (HECM) will soon require a borrower financial assessment in an effort to help determine if a reverse mortgage borrower will have enough cash flow after the reverse mortgage to pay property expenses such as property tax, homeowners insurance and home repair costs.
The financial assessment will review the borrower’s credit history, income and other financial criteria before approving the reverse mortgage. Some borrowers will face mandatory set asides or escrow account to allow the lender to make property tax and homeowner's insurance payments.
The Mortgagee Letter is expected out in Mid February and to be implemented 90 days from the date of the letter which would be mid-to late May 2014. A good reason to apply for the reverse mortgage now!
NEW RULES COMING FOR NON BORROWING SPOUSES AND REVERSE MORTGAGES
If the reverse mortgage is taken out only in one spouse’s name, the terms of the loan, including the loan amount and repayment, apply to that single borrower, and not the “non-borrowing spouse.” The problem is, the reverse mortgage becomes due when the borrower passes away or moves from the home. The spouse who is not on the loan or on title will need to repay the loan. In some cases, that may be fine as the other spouse may have other living arrangements. But it could leave a spouse in a difficult situation.
That's why extra steps are in place such as meeting with an attorney who will write a letter stating you understand the ramifications of this arrangement.
But changes will be coming soon from a statement from NRMLA in January, 2014: “The first Mortgagee Letter will essentially require that in the case of a non-borrower spouse, the age of the younger member of the couple will be utilized to determine the appropriate PLF [principal limit factor],” “HUD will be modifying the PLF tables to cover ages below 62 for this purpose.” So if you want to do a reverse mortgage with only one spouse on title, do it now!
MIP CHANGES TO HECM REVERSE MORTGAGE TOOK AFFECT OCT 2013
The standard and saver option has been eliminated with a new HECM for both fixed and variable rates. The new option has a low initial mortgage insurance premium (IMIP) at .5% if the funds received at closing is 60% or less of the available principal limit.
If higher, the IMIP is 2.5% of the home value or maximum claim amount.
The maximum claim amount high lending limit has been extended another year and remains at $625,500.
Jumbo or proprietary reverse mortgage are expected to arrive on the scene in 2014.
Reverse mortgage interest rates options are:
A variable or adjustable rate tied to the 1 month LIBOR index plus a margin. There is a 10 point lifetime cap on the rate.
The fixed rate option offers an interest rate that does not change over the life of the loan. The expected interest rate has a direct impact on the amount available to the borrower.
Read Maggie’s blog post to learn more.
