Jumbo Reverse Mortgage Loan
Unlock more of your high-value home’s equity
If you are aged 62+* and are looking to take out a reverse mortgage on a high-value home (e.g., a home worth over a $1 million), a jumbo reverse mortgage offers some distinct advantages over a traditional Home Equity Conversion Mortgage (HECM), the most common type of reverse mortgage. (*Some proprietary products may be available as early as 55 years of age.)
Advantages over a Traditional HECM
Your age, the lending limits, the interest rate, and the appraised value of your home all factor into how much money you would be able to receive with a reverse mortgage.
With a traditional HECM reverse mortgage, the home value limit that can be borrowed against is currently capped at $1,149,825—whereas that limit on a jumbo reverse mortgage can extend into the millions of dollars.
Jumbo reverse mortgages often have no mortgage insurance premium (MIP), which can reduce the overall loan costs.
While most jumbo reverse mortgages are non-recourse loans, no jumbo reverse mortgages loans are insured by the FHA.
Unlike a HECM reverse mortgage, with a jumbo reverse mortgage, condos do not necessarily have to be FHA-approved.
How a Jumbo Reverse Mortgage Could Help
Let’s say Harry owns a home that is worth $1.5 million. He may be able to borrow more funds with a jumbo reverse mortgage than a HECM reverse mortgage because the home value amount he is borrowing against is its full appraised value, not the $1,149,825 maximum he would face with a HECM reverse mortgage.
NOTE: Story is for illustration purposes only. The persons depicted herein are fictional and any resemblance to actual persons is a coincidence.
HECM for Purchase Calculator
Note: The free reverse mortgage calculator on this web page is specific to HECM (Home-Equity-Conversion-Mortgage) reverse mortgages.
THE FIGURE AND GRAPHS IN THE REVERSE MORTGAGE CALCULATOR ABOVE ARE INTENDED AS AN ESTIMATE ONLY, BASED ON THE HOME VALUE, MORTGAGE BALANCE, AND BORROWER AGE YOU HAVE PROVIDED. YOUR ACTUAL LOAN AMOUNT MAY DIFFER BASED ON MARKET CONDITIONS AND APPLICABLE FEES IN YOUR AREA
For this example, EXPECTED RATE has been set at 6.5% . Rates are subject to changing market conditions. The “Total Proceeds” amount you may be eligible for is the sum of your “Mortgage Payoff” and “Available Proceeds” and does NOT INCLUDE CLOSING COSTS, FEES, or MORTGAGE INSURANCE PREMIUMS (MIP).
This is not a commitment to lend nor a loan approval. All borrowers must meet loan obligations, including paying all property charges (property taxes, fees, and homeowners insurance) as well as living in the property as the primary residence. The borrower must also properly maintain the home. If the borrower does not meet these loan obligations the loan may become due and payable.
You probably
have questions...
Here are just a few questions we get, you can view more FAQ’s by clicking below.
Over the phone we can ask you a few questions and get some basic financial information and give you the information necessary in order to see how a reverse mortgage could improve your situation.
You can fill out the form to the right and we can send you some reading material you can review.
