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CALL ABOUT UPCOMING REVERSE MORTGAGE WORKSHOPS AT MY RENO OFFICE


These workshops are for you! Understand reverse mortgages in a casual classroom setting.

It takes money to maintain a long, comfortable and financially secure retirement. But you don't need to count your penny's and sacrifice the lifestyle you want. The solution is right under your roof! I hope you attend one of my reverse mortgage workshops, and invite your friends to attend. You will learn how the program works, understand the misconceptions and go away with facts about reverse mortgages. With a good understanding, you can make good decisions.

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Reverse Mortgage Expert in Reno Nevada

When it comes to securing a reverse mortgage for purchasing a home, getting rid of mortgage payments or supplementing retirement income, you need an expert on your side. Maggie O’Connell has the experience and expertise to guide you through the options, efficiently assist through the loan process, offer competitive rates and terms and provide accurate answers to all of your questions. Offering HECM & Jumbo Reverse Mortgages in Nevada, California and all 50 United States!

Maggie lives and works in Reno, Nevada and begain her career in reverse mortgage origination in 1993 in California.  She takes the time to understand her clients needs and financial details so they will benefit from the best program for them and an efficient loan process.
“I’ll put my 25 years of Reverse Mortgage experience and expertise to work on your behalf!”

Who do you want to coordinate your reverse mortgage?

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.

Congratulations! You have 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 in Northern Nevada and 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’Connel

2018 Change: HECM Reverse Mortgage Loan Limits Now $679,650

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 this past year.  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.

To determine the amount available to you click here or call Maggie at 775-770-0870

2018 Changes to HECM Reverse Mortgages

FHA has made a few changes recently to the HECM reverse mortgage program.  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.  Previously, cash draws under 60% of the principal limit carried an initial mortgage insurance premium of .5%.  This results in a savings for borrowers who have high draws and a cost increase for those with draws or lien payoffs below 60%.  The ongoing or annual mortgage insurance premium as dropped from 1.25% to .5% on the loan balance.  Of course, this is a great improvement for borrower’s who carry high mortgage balances and results in a full accrual rate that is competitive with conventional and other FHA loans.

Another important change is, HUD lowered the 5.06% floor to 3%.   The reason this is important is that lower margins and rates result in larger principal limits or funds to the borrower.  So now it’s more important than ever to get multiple quotes as the margin not only reduces the interest rate charged over the life of the loan but also directly impacts the amount you receive. And finally, a very important modification is that HUD has also reduced the Principal Limit Factors or percentage of of the value of the home that homeowner’s will receive.  To learn how this affects you, please request a quote and  feel free to call to discuss how it impacts you as every borrower situation is unique.

 

 

What is a HECM Reverse Mortgage?

What is a HECM Reverse Mortgage? It 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. Commonly known as the Home Equity Conversion Mortgage (HECM) it is insured by the FHA through the Department of Housing and Urban Development (HUD). The loan balance is repaid when the last remaining homeowner leaves the home permanently, sells the property or passes away. Homeowners maintain title and continue to pay their own property taxes, homeowner’s insurance and keep up the maintenance of the property. Just like regular mortgages, the reverse mortgage lender has a lien against the home. To be eligible, at least one borrower must be age 62 or older, must have title to the home and significant equity or the ability to bring in funds to create enough equity and the home must be the principal residence. With the HECM for Purchase program, equity is generated by bringing funds to closing. Eligible properties include Single Family Residence, 2-4 unit properties, townhomes, condos that are FHA approved and manufactured homes that meet FHA requirements.

Home equity is often 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.

New Rules for Non Borrowing Spouses

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 both be on the loan, there are now protections for younger spouses.  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. (more…)

Reverse Mortgage Financial Assessment

We now have a financial assessment for HECM reverse mortgage borrowers. 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,” We review history of paying property taxes, homeowner’s insurance, HOA dues and consumer debt.  In the past we had found that some borrower’s were still unable to meet their financial needs even after receiving the HECM and ended up in trouble with property taxes and other homeownership requirements.  As a result, HUD suffered losses and lenders had to advance funds to make these payments. Implementing  the Financial Assessment guidelines resulted in a safer program for everyone involved.  We are assured borrowers can afford to continue to live in the home and pay obligations.

The qualification is not the same as a normal mortgage loan as we use a residual income method based on your income, family size and the region of the country where you live.  Satisfactory credit includes making all housing and installment payments on time for the previous 12 months and no more than two 30-day lates in the past 24 months. And no major derogatory credit on revolving accounts in the previous 12 months. But with extenuating circumstances that can be explained and documented, we may be able to set aside funds as a tax and insurance reserve account, called a LESA (Life Expectancy Set Aside). The formula is based on current property taxes, homeowner’s insurance premiums, expected interest rate and life expectancy of the youngest borrower.

For the complete HECM Financial Assessment and Property Charge Guide, Click Here

HECM Reverse Mortgage for Home Purchase

A reverse mortgage for purchase allows you to take out a reverse mortgage within your purchase transaction.  You must have a large enought cash down payment to meet the HECM loan amount based on the youngest borrower’s age and current interest rate. And you need to meet income and credit requirements and since there are no mortgage payments to make, those requirements are easier than traditional mortgages.  There has been a big increase in the use of HECM reverse mortgages in Nevada as Real Estate Agents and buyers recognize the benefit.  Sellers are now more willing to accept offers with Reverse Mortgage financing as it is now more mainstream. Get into your new home at a Nevada Active Adult Community 55+, or downsize and put money in the bank from the sale of your larger home. Option open up to you with this helpful program.                      Learn more: HECM for Purchase FAQ        HECM for Purchase Guidelines

To find out your down payment requirement and how much home you can afford, submit your request here.

Reverse mortgage interest rates options are:

The new annually adjusting LIBOR is now available in all states. Enjoy the current low variable interest rates, only a 5 point lifetime cap above the start rate and the rate cannot increase more than 2 points annually. This option is very popular as a line of credit or monthly payment option is available and borrower’s have access to full principal limit on the second year. 

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. Contact Maggie for current rates.

              Happy Reverse Mortgage Lady Let me explain how the amount available to the reverse mortgage borrower is calculated.  There are three factors involved in the reverse mortgage calculation:  1) Age of youngest borrower 2) home value or maximum claim amount and 3) expected interest rate.  The expected rate is tied to the 10-Year
LIBOR index and is used for calculation purposes as an indication of what rates are expected to be over a longer period of time.  The accrual rate uses the 1-Month LIBOR index or 1-Year LIBOR index depending upon the option selected. The index is added to your margin and determines the interest rate charged on the outstanding reverse mortgage loan balance.  But the expected rate determines how much you will receive from the reverse mortgage or HECM.

Read the customer reviews in the sidebar to find out what her clients have to say about their experience working with Maggie O’Connell. Seniors can rest assured they have made the right choice for their Reverse Mortgage Originator.