Jumbo Reverse MortgageReverse Mortgage Loan Advisors

Jumbo Reverse Mortgage 2018 – Reverse Mortgage Jumbo Products Expand

Jumbo Reverse Mortgage 2018

Jumbo Reverse Mortgage 2018
Jumbo Reverse Mortgage 2018

– If you’re considering a JUMBO reverse mortgage in 2018 and have a higher priced home, you may be in luck.  The reverse mortgage jumbo products recently expanded and will continue to expand in 2018.

From about 2008 to 2014, there was really only one investor that offered a jumbo reverse mortgage.  The investor was called Generations Mortgage.  They allowed both brokers and other lenders to use their product.  It was conservative in terms of how much you could borrow AND had a very high interest rate set at about 8.875%.

In the second half of 2014 Generations stopped issuing new loans.  At that time, a new investor entered the market with a product they called HomeSafe.  Similar to the Generations jumbo reverse mortgage offering, it was conservative by nature.  However, it did have a lower interest rate set around 6.99 – 7.5%.  Just like the Generations Mortgage offering, the Homesafe could be originated by them direct, by brokers, and by other lenders.  It didn’t really matter if you went direct with this investor or with a broker or with another lender offering it.  The fee and interest rate structure were virtually the same.

In late 2017, HomeSafe expanded their Reverse Mortgage Jumbo Products line.  They added two more HomeSafe options and two other investors announced at the NRMLA conference that they’ll be launching new proprietary products. All of which are available direct, to brokers, and to other lenders in the reverse mortgage space. We’ll discuss them all here, so read on.  First though, we’ll discuss the HomeSafe expanded options (***Teaser***One of the new options coming in July of 2018 is for 60+ year olds and slated to be lower in cost for the higher end homes)

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HomeSafe Reverse Mortgage Jumbo Products Expand – Here are the Highlights

Jumbo Reverse Mortgage
Jumbo Reverse Mortgage

Now, HomeSafe consists of HomeSafe Save, HomeSafe Standard, and HomeSafe Plus.  We’ll briefly discuss each jumbo reverse mortgage

HomeSafe product below.

HomeSafe Save

  • Pretty low interest rate at 5.99%.
  • Modest origination charge that varies depending on loan amount (usually less than 1%).
  • LTV (percentage of appraised value you can borrow) ranges from 24% to 48% of your appraised value. It moves upward on a sliding scale beginning at age 62 and ending at age 87 (you can do it for older folks, but they just get the same amount an 87 year old would get).
  • Lump sum pay out is the only option.
  • Spouses that are under age 62 are ok under certain circumstances (assuming the other spouse IS of age).
  • Title and escrow or closing fees are similar to a regular loan.

If the HomeSafe Save doesn’t provide enough to payoff your current loans, then the HomeSafe Standard might be your best option.

HomeSafe Standard

  • Slightly higher interest rate vs HomeSave Save. HomeSafe Standard is set around 6.5%.
  • No origination fee with this option.
  • LTV range is slightly higher (percentage of appraised value you can borrow). It ranges from 27% to 51%.
  • A lump sum pay out is the only option.
  • Again, Spouses that are under age 62 are ok under certain circumstances (assuming the other spouse IS of age).
  • Again, title and escrow or closing fees are similar to a regular loan.

If both the HomeSafe Save HomeSafe Standard are not sufficient enough to payoff your current loans, then the HomeSafe Plus may be an option.

HomeSafe Plus

  • HomeSafe’s most aggressive LTV options. They range from 32% to 56%.
  • Due to the more aggressive, riskier LTV options, it has a higher interest rate at around 7%.
  • This option will have a higher origination charge at 1% of the appraised value.

    Reverse Mortgage Jumbo Products
    Reverse Mortgage Jumbo Products
  • The only pay out option is a one time, lump sum.
  • Again, Spouses that are under age 62 are ok under certain circumstances (assuming the other spouse IS of age).
  • Again, title and escrow or closing fees are similar to a regular loan

If none of the HomeSafe Options work for you, perhaps some of the new options (currently not released) will work for you.

GET YOUR FREE INFO KIT! EMAIL US AT  Info@ReverseMortgageLoanAdvisors.com

What Do We Know So Far About the Currently Unreleased Reverse Mortgage Jumbo Products?

  1. A different investor plan a release of a new proprietary / jumbo reverse mortgage in July of 2018.
  • It will be available from the investor itself, brokers, and other lenders.
  • It has a lower minimum age requirement of just 60 years old.
  • They are targeting homes that are $700,000 plus in value and closing costs will be lower compared to the FHA version on higher end homes.
  • It’s called the Equity Edge Reverse Mortgage

That’s all we know for now.  We’ll expand this section as soon as we have more information.

  1. Another investor will also introduce another proprietary product.

At this time, we don’t have any info about this new product except that it’s slated to be launched this summer.

  1. HomeSafe will introduce a fourth option that allows for 5 disbursements (rather than one lump sump amount). This will be a good way to keep the compounding interest at bay.

While late 2017 and early 2018 are challenging times in regard to the FHA reverse mortgage, they are exciting times for the reverse mortgage industry.  For the last decade, the FHA option  was really the only one along with ONE really conservative option wit HIGH interest rate.  Now, we have numerous product releases and more are poised to hit the market soon.

Thanks for stopping by!

Jumbo Reverse Mortgage California
Jumbo Reverse Mortgage California

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For more in depth info on all Reverse Mortgage subjects, check out

www.reversemortgagecalifornia.biz 

www.reversemortgageloanadvisors.com

Reverse Mortgage Frequently Asked Questions

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