A Jumbo Reverse Mortgage differs from a HECM in 3 different aspects. First, a Jumbo reverse mortgage has much lower closing costs associated with the loan. This is not a regulation but a trend in the lending industry. It is believed that the lower closing costs are associated with the higher value of the property. Second, Jumbo loans allow homeowners to access more money on the value of their home even if the equity is not there. Third, only homeowners whose property is valued at over $625,000 can qualify for the program. In all other aspects this type of reverse mortgage is exactly the same. All age limits and ownership qualifications are mandated by law just like a HECM.
What Do You Need To Do To Qualify For A Jumbo Reverse Mortgage
Just like all other reverse mortgages, Jumbo Reverse mortgages have the same age and residency restrictions. You must be a minimum of 62 years of age to apply for the loan. The loan must be against your primary residence and you must remain in that residence to access the loan. The loan does not have to be paid until residency obligation is no longer fulfilled or death. The loan is repaid with the sale of the home.
What Are Interest Rates Like On A Jumbo Reverse Mortgage
When you apply for a Jumbo Reverse Mortgage you can expect to pay a slightly higher interest rate than with a regular reverse mortgage. You will also have to accept the terms of a variable rate as opposed to a fixed interest rate. However, interest is only charged on the amount of money that has actually been used and not for the full value of the credit line.
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