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
HUD Changes Reverse Mortgage Principal Limit Factors offering more money to older HECM borrowers.
For Reverse Mortgage FHA case numbers assigned on August 4, 2014, HECM borrowers will 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, click here for email.
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. (much better than standard variable rate HECM with 10 point life cap).
Borrower’s can receive cash, monthly payments or line of credit to access funds at any time. To receive an analysis for this new option send Maggie an email.
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 any time and to be implemented 90 days from the date of the letter which would be mid-to late August 2014. A good reason to apply for the reverse mortgage now!
NEW RULES PROTECTING NON BORROWING SPOUSES
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 go into affect on August 4, 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 has modified the principal limit factor to reflect the younger spouses age and if the older spouse passes away, the younger spouse may remain in the home and interest will continue to accrue on the HECM. Reverse Mortgage funds will not be available to this spouse. So if you want to do a reverse mortgage with only one spouse on title, get counseling and submit application prior to Aug. 4th!
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. And an "NEW" annually adjusting LIBOR with a 2% cap on the interest rate annually and a 5% cap over the life of the loan.
CLICK FOR QUOTE ON THE NEW LIBOR ANNUAL ADJUSTING OPTION
The expected interest rate has a direct impact on the amount available to the borrower.
Read Maggie’s blog post to learn more.
