I am Maggie O’Connell and I began originating Reverse Mortgages in 1993 specializing in Jumbo Reverse Mortgages. Over the years, the HECM program has dominated the reverse mortgage scene. But my focus has shifted back to Jumbo’s because of recent improvements along with the incredible home values in California. There are four fixed rate options with the lowest offering a lower amount and higher rate options are available for those who need to pay off higher mortgage balances. Refinancing a variable rate HECM to Jumbo makes sense for many borrowers or reduce the rate on a current Jumbo plan but most importantly, eliminate mortgage payments. Owners of non-FHA approved condo’s valued above $500,000 are now able to tap their equity!  So, my 62 year old (and older) friends, if your home value is between $1,000,000 and $4,000,000, now is the opportunity to live the life you CAN afford! I’ll give you the facts and an honest proposal to help you make an informed decision. (note: values higher than $4,000,000 will not realize a higher principal limit)

Offering Jumbo Reverse Mortgages in 19 States! “I’ll put my 25 years of Reverse Mortgage experience and expertise to work on your behalf!” Contact Me!

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.

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. 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

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

This is great news for older homeowners with higher value homes. The new maximum claim amount of $679,650 is an increase from $636,150 in 2017.  The maximum claim amount is the highest home value we can use to calculate HECM proceeds. Proceeds for the loan are based on age of youngest borrower and expected interest rate. As interest rates rise, the principal limit is reduced so now is a good time to pursue the reverse mortgage.

To determine the amount available to you click here or call Maggie at 800-684-9438

When it comes to reverse mortgages, one thing for certain is change.. It’s understandable that a unique and fairly new program such as the HECM reverse mortgage will encounter changes as it plays out for real people and the programs insurer, HUD. The first change to note is in the Initial Mortgage Insurance Premium (IMIP) and the Annual or Ongoing Premium.  The IMIP is now 2% of the home value up to the maximum claim amount of $679,650 for all borrowers, whether your full draw amount is 60% of the principal limit or not. This is a savings for those who had high draws and a cost increase for those with draws below 60%.  The ongoing mortgage insurance premium as dropped from 1.25% to .5% on the loan balance.  This is a very large drop in overall costs for those who carry high mortgage balances and puts the full accrual rate competitive with conventional and other FHA loans.

A very interesting change that potentially affects borrowers is twofold.  HUD lowered the 5.06% floor to 3% so now it’s more important than ever to get multiple quotes as the margin quoted directly impacts the amount you receive.  Lower margins and rates result in larger principal limits or funds to the borrower.  The second and very important change is that HUD has also lowered the Principal Limit Factors, which is the percentage of the value of the home that homeowner’s will receive, but that might be offset by the lower floor on the rate depending on your situation.  Please feel free to give me a call so I can explain how it impacts you as every borrower situation is unique.

Maggie O’Connell

925-784-3286

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 $679,650) 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

The HECM adjustable reverse mortgage interest rate options include a monthly adjusting and annual adjusting option.  The benefit of the annual option are lower lifetime caps on the interest rate plus it includes annual caps. 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

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 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.

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:  (more…)

• This new private, non-FHA Jumbo Reverse Mortgage called “HomeSafe,” is available in these states: · Arizona · California · Colorado · Connecticut · District of Columbia  ·  Florida · Hawaii · Illinois · Louisiana ·  New Jersey · Oregon ·Pennsylvania · Rhode Island · South Carolina · Texas  ·  Virginia  ·  Washington
•  Maximum principal limit is $4 million
• It has a fixed interest rate – call for detailed interest rate structure
• There is no mortgage insurance premium
• Non-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
• Reverse Mortgage Counseling is required.
• Financial Assessment must be completed.
• Call to have your scenario run through our Jumbo Reverse Mortgage Calculator