Bank of America’s Senior Equity Maximizer
July 15th, 2007 | by admin Published in Bank of America, Jumbo Products, Products | 2 Comments
A few weeks ago Bank of America completed the acquisition of Seattle Mortgage’s reverse mortgage division. Before the purchase, BofA started originating reverse mortgages through a pilot program they started in Arizona. The program offered the standard HECM products as well as a proprietary product called the Senior Equity MaximizerTM.
Recently Realty Times wrote that, “Not only does it have a high maximum loan limit-about $10 million, according to officials-but it also cuts fees, raises loan-to-value ratios and offers automatic increases in available loan amounts as property values grow.” I wasn’t able to find out what the rate would be on the Senior Equity Maximizer, but I was able to find this:
Features of Simple Equity Maximizer
- Draw Limit Increase — Your available credit will automatically increase each month, even if your line is fully drawn.
- Equity Preservation — You can preserve a percentage of your home’s appraised value at loan origination. When the loan becomes due, that percentage of the appraised home value cannot be collected by Bank of America.
- Reassessment — You can refinance your loan without paying all of the typical origination costs. If your circumstances change, you may be eligible for more money.
- Non-Recourse — You will never owe more than the value of your home. Neither you nor your heirs will have personal liability for the loan.
Fees for Simple Equity Maximizer
- Origination Fee = 1% of home value (maximum of $10,000)
- Processing Fee = $795
- Closing Costs = Typical closing costs apply
- Servicing Fee = $25 per month
- Interest Rate = An adjustable rate that will adjust monthly with your statement
According to the article “Reverse-mortgage market zooms forward” from MarketWatch, BofA is planning to release the product nationwide soon. No word if BofA is planning to offer it to brokers through their wholesale channel. If anyone has more information on the product please let me know.
Technorati tags: Reverse Mortgage, Reverse Mortgage News, Senior Equity Maximizer, HECM, Bank of America, Seattle Mortgage, Jumbo Reverse Mortgage
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November 13th, 2007 at 1:25 pm (#)
[…] mortgage products within the next six months. BofA has been saying that they would release their Senior Equity Maximizer since a November article from MartketWatch, but I’ve yet to see any real information that […]
April 21st, 2008 at 8:49 am (#)
I am an American homeowner with property in Maryland. I am presently living in Ireland and want to try and release some or all of my equity to allow me to purchase here and still retain ownership of my home in Maryland.
I would greatly appreciate any advise you have to offer.
With Thanks,
Dan Young