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! "I'll put my 21 years of Reverse Mortgage experience and expertise to work on your behalf!" Contact Maggie
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
ACT SOON TO AVOID FINANCIAL ASSESSMENT REQUIREMENT!
Financial Assessments start March 2nd but don't let that date fool you! California borrowers must complete counseling by mid-February to comply with another new rule regarding a 7 day waiting period from counseling to application. We must receive applications by Feb. 25th to assure a case number will be received in time. Even if you have no problem qualifying under the new guidelines you may want to get your application in soon to eliminate the need to provide tax returns and other demands. Contact Maggie
NEW HECM OPTION: The Annual Adjusting LIBOR Variable Rate
Features include: Interest rate is fixed for one year at a time and after a year will adjust to the current LIBOR index plus the margin on your reverse mortgage. The adjustment the next year cannot increase more than 2 points. The lifetime cap is 5 points above the start rate. Read Maggie’s blog post to learn more. To receive an analysis for this new option Contact Maggie
New Jumbo Reverse Mortgage, HomeSafe is now available for homes and condos in California, Hawaii, Florida, New Jersey, Texas, Arizona, Colorado and will be rolled out in other states soon.
- This new private, non-FHA Jumbo Reverse Mortgage called “HomeSafe,” is available through us as a reverse mortgage broker and underwritten through Urban Financial.
- Maximum loan amount is $2.25 million
- Fixed interest rate is currently 6.99% (similar to full HECM fixed accural rate)
- There is no mortgage insurance premium and no loan origination fee
- Borrower's must draw all funds at closing, there will be no line of credit or monthly payment option (jumbo line of credit program to be available in October, 2014.)
- Non-FHA approved #condos valued over $500,000 that pass the spot condo requirements will be eligible
- Available for ReverseMortgage for Home Purchase and seller concessions are allowed.
- 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.
Contact Maggie O'Connell for more information
Inform Me When More Jumbo Reverse Mortgages Become Available.
NEW RULES PROTECTING NON BORROWING SPOUSES
HECM Reverse Mortgages still requires borrowers to be at least 62 years old, but new rules adjusts proceeds based on the age of a younger non-borrowing spouse (NBS). The new HUD rule gives the NBS the right to remain in the home indefinitely during a deferral period if all the requirements are met. If the borrowing spouse passes away, the surving 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 a HECM mortgagor at the time of loan closing
and have remained the spouse for the duration of the HECM mortgagor's lifetime;
2. Have been properly disclosed to the mortgagee at origination and
specifically named as a Non-Borrowing Spouse in the HECM documents; and
3. Have occupied, and continue to occupy, the property securing the
HECM as the Principal Residence of the Non-Borrowing Spouse.
This transaction requires the NBS to be removed from title and be able to be added back quickly so consider this option carefully!
Reverse Mortgage Financial Assessment Starts March 2, 2015
The Department of Housing and Urban Development has issued a financial assessment for HECM reverse mortgage borrowers that will take effect for all case numbers issued on or after March 2, 2015. HUD calls for HECM lenders 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.
HUD states, “In conducting this financial assessment, mortgagees must take into consideration that some mortgagors seek a HECM due to financial difficulties, which may be reflected in the mortgagor’s credit report and/or property charge payment history. The mortgagee must also consider to what extent the proceeds of the HECM could provide a solution to any such financial difficulties.”
To Read the HECM Financial Assessment and Property Charge Guide, Click Here
Reverse Mortgage for Home Purchase
Reverse Mortgages are a helpful financial too that can be used to purchase a home. It's used for those who don't want to make mortgage payments and also want to minimize the cash requirement in your 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 understand clear guidelines and starting from the beginning with the help of a Reverse Mortgage Originator who is experienced in the transaction.
