Jumbo reverse mortgage puts your equity to work for you
A jumbo reverse mortgage is a loan available to seniors 62 years or older with high value homes. Not federally insured like the HECM mortgages the jumbo mortgages allow you to get a lot more cash out of the equity in your home. You no longer have to make monthly mortgage payments, you get the monthly payment to use any way you would like.
With a jumbo reverse mortgage you can turn your home's equity into cash. You can pay the closing costs and other lender's fees with the cash you receive and you get to keep the title to your home. You must live in the home and continue to be responsible for property taxes, insurance and maintenance of the property.
This type of mortgage has not been around forever and when they first came on the market they had extremely high interest rates so they were not very popular. Eventually they became more popular and the interest rates came down so more people with high-value homes thought that this type of mortgage was something they might like to have.
Then the housing bubble burst and basically the bottom fell out of the market and more and more people began losing their homes than could take out this type of loan. Interest rates were still higher than for a traditional loan and borrowers just could not see themselves clear to pay that kind of interest.
If you have this type of loan then the fact that your loan is secured by your home and the housing values are still declining then if you do the math, the amount of interest works out to be even higher. You can ask but your bank is laughing all the way to the bank and probably will not adjust their rate of interest.
This type of mortgage is a great way for seniors to increase their retirement income and pay off existing debt. The money can help pay property taxes and insurance on time and in full and can even get some retirement investments started for the long haul. Being retired does not have to be synonymous with 'being in the poor house'.
Since this type of loan does not have the same protection as an FHA HECM loan you must be sure you can trust the bank or lender who holds the note on the loan. Research a couple of different lenders and then make an informed decision. Get everything in writing especially as to when you will receive your money and if you are leery of the continuity of monthly payments then ask to receive your money as one lump sum.
You have worked hard to get where you are and the last thing you need is to have a not-so-reputable financial institution come along and stick it to you. When you do your research, take notes, then you can ask pertinent questions and will know without a doubt if the lender you choose knows the market and all the ins and outs, ups and downs. It only makes sense to work with someone who is an expert.
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Article Source: Messaggiamo.Com
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