Reverse Mortgage Adviser Icon Reverse Mortgage Adviser
Your Resource for Objective Reverse Mortgage Information
Call Now! 1-800-407-6365
Lenders Click Here
Reverse Mortgage Calculator

Borrower Eligibility
  • All borrowers must be 62 and older
  • Must own property and occupy as primary residence
  • Participate in an information counseling session
  • Property must meet FHA property standards
  • Maintain home with needed repairs, property taxes and insurance
Loan Amount Based On
  • Age of youngest borrower
  • Current interest rate
  • Lesser of appraised value or the FHA insurance limit


Helpful Links
Reverse Mortgage Home
How Reverse Mortgages Work
Step By Step Process
Reverse Mortgage Calculator
Browse Reverse Mortgage Lenders
Reverse Mortgage News
Reverse Mortgage Articles
Frequently Asked Questions
Testimonials and Interviews
Reverse Mortgage Video

BBB Accredited Business



Corporate Links
About Us
Contact Us
Privacy Policy
Sitemap

 

Jumbo Affordable Reverse Mortgages Advantages

Update: Jumbo reverse mortgage loans served their purpose very well during 2006 - 2008. Due to the recent economic downturn and credit crunch as well as the newly raised HECM reverse mortgage loan limit, the Jumbo reverse mortgages are practically obsolete. Government backed HECM loans have now completely taken their place. HECM reverse mortgages have much higher loan limits then they used to, use our loan calculator to see how much you can get.

--------

If you read the recent news about mortgages you would have most probably ran across the new jumbo reverse mortgages. When we say jumbo, we mean that you can get a reverse mortgage loan in a jumbo amount. An advantage of this new jumbo program is that you can take out more money from your home equity. This makes jumbo reverse mortgages all the more affordable in eligible cases.

In ordinary reverse mortgage loans the FHA has set a maximum amount that any borrower can take out on his home. This maximum amount is based on the geographic location of the borrower and the area’s median home price. Jumbo reverse mortgages are actually, in theory, impossible. This is because the reverse mortgage program run by the Department of Housing and Urban Development (HUD) is tied to the limits set by the FHA. The HUD’s reverse mortgage program is also known as Home Equity Conversion Mortgages (HECM) reverse mortgages.

In practice, however, it is possible to get an affordable jumbo reverse mortgage. Instead of factoring in only a percentage of the area’s median home price, lenders now calculate a new reverse mortgage loan based on 100% of an area’s homes.

Is this good or bad news for seniors? Are the new jumbo reverse mortgages affordable?

Answer: it depends on the housing market of your area. It also depends on your social security and Medicare.

Reverse mortgages found their way into the market to help seniors survive their retirement years. Indeed, one of the known advantages of this program is that it helps seniors find relief from the shortness of their social security and Medicare benefits. However, with the old formula of HECM reverse mortgages, seniors do not get the full benefit of their home value. By using 100% of the median home price value, the new jumbo reverse mortgages offer seniors the advantages of having more liquid cash in their pockets.

Of course, some analysts are fast to highlight the potential disadvantages of jumbo reverse mortgages: if the market value of the house dwindles at the time of the borrower’s death, the sales proceeds of the home might not be enough to cover the loan (principal plus interest). Then again, one of the bottom line principals of all HECM reverse mortgages is that they were created for the advantage of seniors.

Whether they are jumbo or just regular-sized loans, the FHA will always insure reverse mortgages. This means the FHA will always repay the lenders all unpaid amount of the reverse mortgage loan. Jumbo reverse mortgages can mean bad news for the federal government if it has to pay all excess loan amounts that come in HUD’s way.

The government, however, has relief in the insurance premiums that it collects from reverse mortgage borrowers. The insurance premiums charged to reverse mortgage applicants’ equals 2% of the total loan amount. After the first year, the annual premium is then reset to .5% of the loan amount.


Find A Reverse Mortgage Lender
Find a reputable reverse mortgage lender in your area.
Free Reverse Mortgage Guides
Download up to 5 Reverse Mortgage Guides FREE!
Download up to 5 Reverse Mortgage Guides FREE!
Get Your Reverse Mortgage Kit
Everything you need to know about reverse mortgages.
Get Your Reverse Mortgage Kitr
Reverse Mortgage Video Learning
Determine whether a reverse mortgage is right for you.
Reverse Mortgage Video Learning
Talk To A Reverse Mortgage Expert
Contact an experienced reverse mortgage counselor.
Talk To A Reverse Mortgage Expert
Free Reverse Mortgage Calculator
Find out how much you can borrow, instantly.
Free Reverse Mortgage Calculator

Read Reverse Mortgage Articles
Reverse Mortgage Loans for Senior Citizens
Instant Online Internet Reverse Mortgage Web Calculator
Reverse Mortgage Programs on the Web News
A Reverse Mortgage Price Counselor Counseling Consultant
Reverse Mortgage Loan Costs and Fees Specialist
Seminar: Problems With Reverse Mortgage Products
pros, cons, benefits, disadvantages & pitfalls of reverse mortgages
Age Formula for Reverse Mortgage Rate Calculations
Reversemortgage, Reverse Mortages, Reverse Morgages
Myths, Misconceptions & Limits of the Reverse Mortgage Industry
Application Qualifications to Apply for a Reverse Mortgage
Education Guide, Facts & Rules for the Reverse Mortgage Dummy
What is a Reverse Mortgage, Definition, Guidelines, About & FAQ
Reverse Mortage Loan, Rate and Payment Calculator
Reverse Mortgage Company and Broker Comparison
Affordable Reverse Mortgages from Banks & American Government
Reverse Mortgage Lending, Interest Rates and Line of Credit
Reversed Mortgage Loan Guide for Reversed Mortgages
New Jumbo Affordable Reverse Mortgages Advantages
Statistics Provider Proves That Reverse Mortgage Market Works
Closing Costs of Reverse Mortgage Refinance / Refinancing
Reverse Annuity and Home Equity Conversion Mortgage
FHA Legislation Creates Insurance for HUD Reverse Mortgages
Leads for Reverse Mortgage Lenders, Agents and Brokers
Proprietary / Private Company Reverse Mortgages
HECM Reverse Home Equity Mortgage Loan

Browse Reverse Mortgage Lenders by State
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
District of Columbia
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
South Carolina
South Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming