Key facts you need to know about jumbo reverse mortgage, brought to you by
Lone Star Reverse Mortgage, Inc.
Are you age 62+ and interested in utilizing the equity you have built in your home to fund your retirement or to simply enjoy the wealth you have accumulated with your home? If you live in a high-value home (worth at least $700,000 plus or a condo worth $500,000) a jumbo reverse mortgage may make sense for you. A traditional reverse mortgage probably will not give you the most value for the equity you have accumulated over the years. Alternatively, you should consider a jumbo reverse mortgage. Jumbo reverse mortgages are very similar to traditional reverse mortgages, but also have some significant differences.
The higher limits of jumbo reverse mortgage loans enable owners of high-value homes to access larger amounts of equity that would not be available from the standard HECM loan. As with a standard reverse mortgage, a jumbo reverse mortgage is a loan that converts a portion or percentage of your home’s equity to cash. Once you take out a reverse mortgage, there is never a monthly payment and the homeowners will have the home for the rest of their lives. Homeowners will have the responsibility to live in the home and pay property taxes, basic maintenance and keep the home insured.
A reverse mortgage is only available to seniors age 62 or older. You are allowed to repay the reverse mortgage, should you choose to do so, by selling the house. You can use the cash from a reverse mortgage for any purpose, including funding your retirement or purchasing a house or condo in an upscale area or active lifestyle community. Standard reverse mortgages have a loan top limit of $679,650. Homeowners with homes valued at more than $679,650 are not able to access the maximum value of the equity they amassed in their home. These limits within the traditional reverse mortgage program made the HECM unworkable for seniors with high-value homes and significant equity accumulation.
For senior homeowners with high-value homes of $700,000 and above jumbo reverse mortgages allow borrowers to access the higher level of equity they have in their homes. Because jumbo reverse mortgage lenders aren’t FHA insured, lenders don’t have to follow FHA guidelines about loan size. Other than the increased lending amount jumbo reverse mortgage lenders follow other FHA guidelines. Most importantly, our lenders offer strong borrower protections that equal FHA protections.
Our proprietary jumbo reverse mortgage lenders match the same consumer protections that are found on FHA insured reverse mortgages. As with standard reverse mortgage HECM loans, our jumbo reverse mortgages are “non-recourse” loans. If your loan balance ends up being more than the value of your home, you do not have to pay the difference. The lender will absorb the loss. Also, co-borrowers or spouses can stay in the house as long as they are physically able. Of course, taxes, insurance, and maintenance costs must be paid.
How are jumbo reverse mortgages different
from standard HECM reverse mortgages?
Higher Funding LimitsWhile standard reverse mortgages limit borrowers to loans up to $679,650, our jumbo reverse mortgages allow borrowers to borrow up to $4 million which is significantly higher than the loan limit for a regular reverse mortgage. The exact amount you can borrow depends on the value of your house, your age, and how much you currently owe on the home.
Lower Closing CostsHECM reverse mortgage loans insured by the FHA carry some substantial financing charges. One of the largest costs associated with a standard reverse mortgage is an upfront mortgage insurance policy premium (MIP) of 2% of the appraised value. Borrowers also have to pay an annual MIP charge of 0.5% of the mortgage balance. Jumbo reverse mortgages don’t carry these MIP insurance charges.
Receive Funds ImmediatelyWhen you take out a jumbo reverse mortgage, you get the full proceeds of the loan upfront all at once or you can take a portion of the loan at closing and leave the balance in your LOC for up to 5 years. Regular reverse mortgage loans can be structured as a line of credit or a monthly disbursement of funds.
Jumbo Not FHA InsuredA jumbo reverse mortgage is not insured by the FHA, however, jumbo reverse mortgage lenders extend borrowers the same protections as the FHA offers.
Lone Star Reverse Mortgage, Inc. Tel: 973-388-3888
Benefits of a Jumbo Reverse Mortgage
Access More Value From Your HomeJumbo reverse mortgages allow borrowers to access up to $4 million of their home’s value. Standard HECM FHA insured reverse mortgages loans only offer loan balances up to $679,650. Jumbo reverse mortgages are more suited for homeowners with homes valued at $700,000 plus or a condo worth $500,000.
Eliminate Monthly Mortgage PaymentsJumbo reverse mortgages can be used to eliminate monthly mortgage payments while allowing homeowners to remain in higher cost of living areas.
No Mortgage Insurance PremiumsBecause jumbo reverse mortgage loans aren’t FHA-insured products, borrowers don’t have to pay upfront or ongoing mortgage insurance premiums.
Non-Recourse LoanOur jumbo reverse mortgage lenders offer borrowers consumer protections that equal the protections offered by the FHA. For example, our jumbo reverse mortgages are non-recourse loans — this means that neither you nor your heirs will have to pay the difference if the loan value exceeds the home’s value when the loan is called due.
Call Us To Learn More About Jumbo Reverse MortgagesIf your house is worth $700,000 or more, and you have accumulated equity you would like to access as cash now, a jumbo reverse mortgage could be right for you. A jumbo reverse mortgage is an excellent way to use your home’s value and your equity to fund a portion of your retirement or for whatever purpose you see fit.
Lone Star Reverse Mortgage, Inc., has 13 years of experience providing Texas homeowners with information about reverse mortgages and we have helped Over 750 Texas homeowners age 62+ eliminate their monthly mortgage payment.
Lone Star Reverse Mortgage, Inc. – Tel: 972-388-3338
Contact Us For More Information
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Bob Worley – NMLS # 211905 – TX Lic.# 50404 • Debbie Worley – NMLS # 211059 – TX Lic. # 67929
Lone Star Reverse Mortgage NMLS # 769381
Marketing Office: 6565 N MacArthur Blvd., Suite 225, Irving, Texas 75039 Corporate Office: 207 Keel Way, Horseshoe Bay, Texas 78657
CONSUMERS WISHING TO FILE A COMPLAINT AGAINST A COMPANY OR A RESIDENTIAL MORTGAGE LOAN ORIGINATOR SHOULD COMPLETE AND SEND A COMPLAINT FORM TO THE TEXAS DEPARTMENT OF SAVINGS AND MORTGAGE LENDING, 2601 NORTH LAMAR, SUITE 201, AUSTIN, TEXAS 78705. COMPLAINT FORMS AND INSTRUCTIONS MAY BE OBTAINED FROM THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV. A TOLL-FREE CONSUMER HOTLINE IS AVAILABLE AT 1-877-276-5550. THE DEPARTMENT MAINTAINS A RECOVERY FUND TO MAKE PAYMENTS OFCERTAIN ACTUAL OUT OF POCKET DAMAGES SUSTAINED BY BORROWERS CAUSED BY ACTS OF LICENSED RESIDENTIAL MORTGAGE LOAN ORIGINATORS. A WRITTEN APPLICATION FOR REIMBURSEMENT FROM THE RECOVERY FUND MUST BE FILED WITH AND INVESTIGATED BY THE DEPARTMENT PRIOR TO THE PAYMENT OF A CLAIM. FOR MORE INFORMATION ABOUT THE RECOVERY FUND, PLEASE CONSULT THE DEPARTMENT’S WEBSITE AT WWW.SML.TEXAS.GOV.