Jumbo Reverse Mortgage

Jumbo Reverse Mortgage Calculator

If you’re looking for a Jumbo Reverse Mortgage Calculator, you’ll be hard pressed to find a GOOD jumbo reverse

Jumbo Reverse Mortgage Calculator
Jumbo Reverse Mortgage Calculator

mortgage calculator online.  We’ll explain why AND we’ll simply show you a jumbo reverse mortgage age chart that shows you the percentage of the appraised value you might be able to borrow if you need or want a jumbo reverse mortgage.  Also, we’ll touch on jumbo reverse mortgage rates and applicable jumbo reverse mortgage loan limits and loan to value.  That said, let’s dive in.

What is a Jumbo Reverse Mortgage?

A reverse mortgage is a special type of loan that can be taken out by  homeowners that are aged 62 plus that doesn’t require a monthly payment for as long as you live or for as long as you live in your home.  Most reverse mortgages are insured by the FHA and have a maximum loan amount ranging from about $380,000 – to $544,000 depending on your age.  The maximum appraised value considered for an FHA reverse mortgage is currently set at (2019) $726,525.

Simply put, a jumbo reverse mortgage is one that allows homeowner to access more than what they can with the FHA reverse mortgage.  It also allows you to borrow based on your homes actual value vs the FHA max appraisal amount (basically homes value more than $726,525).

Get Your Free Reverse Mortgage Info Kit

Jumbo Reverse Mortgage Calculator

Like we mentioned before, there’s not really any good jumbo reverse mortgage calculators available online.  In fact, I used on on a website I found and it was WAY OFF.

Here’s why you won’t find any good calculators online.  No matter how many lenders or brokers there are that offer jumbo reverse mortgages, there are really only 5 lenders / end investors that offer these programs.  For example, I worked for a direct lender that funded their own reverse mortgages.  We offered jumbo reverse mortgages.  At the time, there were only 3 lenders that offered them (at one point there was only one lender offering them).  However, we could offer this program, but we had to function as a broker when we did this loan.  Again, at this point there are 5 lenders / investors that offer a jumbo reverse mortgage.  Now, the percentage of the appraised value you can get is almost exactly the same with every lender.  However, there are subtle differences in the percentage that each will lend.  Hence, any one jumbo reverse mortgage calculator just doesn’t work.  Below, we’ll provide a range of what you might be able to borrow based on your age.  Keep in mind, it varies for EVERY passing year.

Get Your Free Reverse Mortgage Info Kit

Jumbo Reverse Mortgage Rates

The most common question ever asked by a consumer is probably “what are the rates?”.  Or, “what is the interest rate?”.  Reverse mortgages are slightly different.  With a normal loan, the interest rate plays into what your payment will be along with the loan term and amount you borrow.  The payment is something you need to be able to handle for up to 360 months.  It’s pretty important.  Well, there’s no payment with a reverse mortgage, so in that respect interest rates don’t matter.

Get Your Free Reverse Mortgage Info Kit

How Do Jumbo Mortgage Rates Impact Reverse Mortgages?

Keep in mind, the following only applies to jumbo reverse mortgages in 2017, 2018, & 2019.  For now, we’ll assume it will remain the same.  Interest rates have two separate impacts on jumbo reverse mortgage loans:

  1. The higher the interest rate, the more you can borrow for any given age bucket.  For example, a 70 year old might be able to borrow about $36.5% of the appraised value with the lowest interest rate available for the program.  However, the same 70 year old might be able to borrow more like 46.5% of the appraised value if they select the highest interest rate.
  2. Another way the interest rate impacts a jumbo reverse mortgage pertains to how quickly the loan balance grows.  Since you don’t make payments, the interest gets added to your loan balance.  The higher the rate, the faster it grow.  The lower the rate, the slower it grows.  Really, this only impacts you if you sell the home before you pass away.  If you plan to live in the home for the rest of your life, this really only impacts the heirs of your estate.

The jumbo reverse mortgage rates presently range from the upper 5% range up to 7.375%.  Now, this might sound high, but it’s not bad.  Also, there’s no ongoing mortgage insurance like with the FHA reverse mortgage.  Up until 2014 and 2015 these rates used to be 8.5% – 8.875%, so something in the 5’s and 6’s isn’t bad.

Get Your Free Reverse Mortgage Info Kit

Jumbo Reverse Mortgage Loan Limits

The jumbo reverse mortgage loan limits are currently set at $4,000,000.  However, that doesn’t mean that everyone can get that amount.  The amount you get depends on the age of the youngest borrower and their home’s appraised value.  For example, a 76 year old can borrow roughly 39-49% of the appraised value.  Hence, if this 76 year old person’s home is worth $2,000,000., then they can only borrow $780,000 – $980,000 depending on the program / rates they choose.

Get Your Free Reverse Mortgage Info Kit

Jumbo Reverse Mortgage Loan to Value and Jumbo Reverse Mortgage Age Chart

During the years of 2008 – 2014 there was only one lender / investor that offered this type of reverse loan. 

Jumbo Reverse Mortgage Age Chart
Jumbo Reverse Mortgage Age Chart

That company went out of business in 2014 and almost immediately after there were two other investors that entered the scene.  Since then, more lenders have joined the ranks and hopefully more will follow suit.  That said, this program has been changing rapidly (at least compared to the former stagnation).

On the right side of the page is a jumbo reverse mortgage age chart.  It show you the approximate percentage of appraised value one can borrow at any given age.  You get a different amount for almost every age bucket.  However, for simplicity, we just did it for every other even year.  There is a newer, special reverse mortgage at age 60 program available in some states and we show you what you can get at age 60 and 61.  This is newer program that is evolving quickly.  Only one lender offers it and it’s one that we work with a Reverse Mortgage Loan Advisors.

Want more info from Reverse Mortgage Loan Advisors? Info@ReverseMortgageLoanAdvisors.com

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Jumbo Reverse Mortgage Videos:

Reverse Mortgage at Age 60 Program

What Is a Jumbo Reverse Mortgage

Jumbo Reverse Mortgage Loan Limits

 

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