Jumbo Reverse Mortgage - YouTube

Kent Kopen here.

Today we're going to talk about Jumbo reverse mortgages.

Jumbo reverse mortgages are for homeowners with homes worth more than $800,000.

The new Jumbo reverse is better than what was available in 2017 because it provides

access to more wealth than the popular FHA reverse.

The Jumbo can also be used to buy a house, without having a mortgage payment.*

We're often asked, "Which one is better, the Jumbo or the FHA version?"

That's a little like asking...

"Which is better a hammer or a screw driver?"

It depends on what you're trying to accomplish.

The Jumbo can do things the FHA version cannot, and vice versa.

All reverse mortgages can do something nothing else can: allow access to wealth trapped in

a home without selling or making a mortgage payment.*

When a reverse mortgage is the right tool, then the question is: which type is best.

Answering that depends on what's important.

The following list clarifies when one is a better fit than the other.

Here are 10 pros and cons of the new Jumbo compared to today's FHA reverse.

Advantage #1, get more cash on higher value homes.

Advantage #2, the home's value is not capped at the FHA lending limit of $679,650.

On an FHA reverse, value over $679,650 is ignored.

Advantage #3, no mortgage insurance premiums.

Jumbos have no, 2% of house value, up-front mortgage insurance.

Jumbos have no, 0.5% of loan balance, annual mortgage insurance.

Advantage #4, no 60% disbursement limit in year one - all proceeds available at closing.

Advantage #5, three different fixed-rate options: lower rates if need less money.

Advantage #6, it's not an adjustable loan - the rate never changes.

Advantage #7, condos do not have to be FHA approved.

Advantage #8, can pay off debts to qualify.* Advantage #9, can pay off mortgages or liens

seasoned under 12 months.

Advantage #10, can retain up to 4 financed properties.

Here are the cons, or drawbacks, when comparing a Jumbo to an FHA reverse.

Drawback #1, must take entire loan amount up-front, at closing.

Drawback #2, no line of credit option; cannot get more money later.

Drawback #3, no monthly income option.

Drawback #4, jumbos have a $30 monthly servicing fee; added to loan balance.

Drawback #5, when more than one appraisal is required, the lender uses the lower value.

Drawback #6, seasoning requirements if refinancing an existing reverse mortgage.

Drawback #7, refinances require a closing costs and loan proceeds test.

Drawback #8, non-borrowing spouses do not have same protections.

Drawback #9, if borrower doesn't want all money they're eligible for, they must explain

why in writing.

Drawback #10, proceeds can affect certain government benefits.*

The new Jumbo Reverse Mortgage has more features and benefits than last year.

And, recent changes have made it a better wealth management tool.

If you would like to see how much you can get with a Jumbo reverse mortgage, go to:www.ReverseLoanAmount.com

Visit us on the web at:www.theReverseAdvisor.com.

Kent Kopen is a Certified Reverse Mortgage Professional.

Call us at: (800) 208-1252.