Jumbo Reverse Mortgage
Unlock More of Your High-Value Home’s Equity with a Jumbo Reverse Mortgage
At Fairway, we are dedicated to finding the right home loan for your unique needs. If you are aged 60+* and own a high-value home (e.g., worth over $1 million), a jumbo reverse mortgage can provide distinct advantages compared to a traditional Home Equity Conversion Mortgage (HECM).
(*Some proprietary products may be available as early as age 55.)
What is a Jumbo Reverse Mortgage?
A Jumbo Reverse Mortgage is a financial solution tailored for older homeowners with high-value properties. It allows you to tap into your home equity without the obligation of regular monthly mortgage payments. Here’s how it works:
- A home loan designed for older homeowners with high-value properties.
- Allows access to a portion of your home equity while deferring repayment.
- Offers flexible payment options:
- Pay as much or as little as you like monthly.
- No mandatory monthly mortgage payments (you still cover property taxes, insurance, and maintenance).
Key Advantages of a Jumbo Reverse Mortgage
Unlike traditional Home Equity Conversion Mortgages (HECMs), Jumbo Reverse Mortgages offer unique benefits for those with higher-value homes. These advantages can make a significant difference in your financial flexibility:
1. Access More Equity
- Borrow against the full appraised value of your high-value home, unlike a HECM reverse mortgage, which caps the borrowing limit at $1,149,825.
- Example: Harold owns a $1.5 million home. With a jumbo reverse mortgage, he can borrow more than the HECM’s capped limit of $1,149,825.
(Note: This example is for illustrative purposes. The persons depicted are fictional.)
2. Avoid Mortgage Insurance Premiums (MIP)
- Jumbo reverse mortgages often eliminate the need for MIP, lowering overall loan costs.
- Unlike HECM reverse mortgages, jumbo loans are not insured by the FHA but are typically non-recourse loans.
3. Flexible Condo Qualifications
- Condos may qualify without FHA approval, making it easier for certain property types.
Additional Benefits of a Jumbo Reverse Mortgage
Jumbo Reverse Mortgages aren’t just about accessing your home equity—they also provide flexibility in how you use the funds. Consider these added benefits:
- Use it to purchase a new home.
- Borrow up to $4 million with funds accessible as:
- A single lump sum.
- A line of credit.
Qualification Requirements
If you’re considering a Jumbo Reverse Mortgage, it’s important to know who qualifies. These loans are designed for homeowners with high-value properties who meet certain criteria:
- Ideal for homeowners aged 62+ (or 55+ for some proprietary products).
- Designed for properties with high values.
- Reach out to a Fairway Retirement Mortgage Specialist to learn more.
Interest Rates
Understanding the costs associated with a Jumbo Reverse Mortgage is essential. While interest rates are typically higher than those of HECM reverse mortgages, you can save on mortgage insurance premiums (MIP):
- Rates vary based on lender and product type (fixed or variable).
- Jumbo Reverse Mortgages save you on MIP costs.
Why Choose Fairway?
At Fairway, we specialize in tailoring mortgage solutions to meet our customers’ unique needs. Whether you’re exploring a Jumbo Reverse Mortgage or a traditional HECM, we’re here to guide you every step of the way:
- Nationwide availability of Jumbo and HECM Reverse Mortgages.
- A commitment to finding the best option for your needs.
Contact us today to see how a Jumbo Reverse Mortgage can help you achieve your retirement goals.
Frequently Asked Questions
No, jumbo reverse mortgages are only available for primary residences. The property must be your main home, and you must live in it for the majority of the year.
Eligible properties typically include:
- Single-family homes
- Multi-unit homes (up to four units, with one unit being your primary residence)
- Certain condominiums (FHA approval is not required for jumbo loans)
No, you have complete flexibility in how you use the loan proceeds. Popular uses include:
- Paying off existing debt
- Home renovations
- Travel or lifestyle expenses
- Long-term care planning
- Supplementing retirement income
Jumbo reverse mortgages are non-recourse loans. This means you or your heirs are not responsible for paying back more than the home’s value at the time of sale, even if the loan balance exceeds the home’s value.
The amount you can borrow depends on several factors, including:
- The appraised value of your home
- Your age (or the age of the youngest borrower)
- Current interest rates
Absolutely.
- You can make prepayments at any time.
- Certain tax advantages* may apply.
Please consult a tax advisor for guidance specific to your situation.
Borrow up to $4 million, with funds available as a lump sum or line of credit.
Get Reverse Mortgage Advice From Kim!
Kim Prater - Licensed Reverse Mortgage Professional
"Reverse mortgages can be complicated. If you want straight forward, no B.S. advice from a reverse mortgage expert who really cares about his clients, then fill out this form or give me call."
Kim Prater
