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!"
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
HUD Changes Reverse Mortgage Principal Limit Factors offering more money to older HECM borrowers.
Most HECM borrowers will now receive a larger percentage of their home value. As ages increase, the benefit is even greater. Send me an email or call 925-784-3286 to find out how much you can receive,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.
Borrower’s can receive cash, monthly payments or line of credit to access funds at any time. To receive an analysis for this new optionContact Maggie
REVERSE MORTGAGE FINANCIAL ASSESSMENT
HUD has been telling us a financial assessment is on it's way for a long time now. They want to make sure reverse mortgage borrowers 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.
This is to be implemented 90 days from the date of HUD's mortgagee letter which was expected to be issued by now. Maybe they changed their minds! (hopefully!)
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!
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.
Jumbo or Proprietary Reverse Mortgages
At this time we have one proprietary reverse mortgage but reverse mortgage lenders are busy working on new products. This will allow people with high value homes and non-fha approved condos to take advantage of the great features of the reverse mortgage, mainly not having to make mortgage payments. Demand is high for this product and I am keeping close contact with those who want to be informed the minute these new products are on the market. If you would like to be on the 'hot list' for jumbo reverse mortgages, please complete this short form and you'll be the first to know!
Inform Me When Jumbo Reverse Mortgages Become Available.
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Seniors can rest assured they have made the right choice for their Reverse Mortgage Originator. Maggie O'Connell's background..