​No, PEARLS is not about a necklace we wear. Rather, it is about support for the 60+ population. Let me explain: PEARLS stands for Program Encouraging Active Rewarding Lives for Seniors. PEARLS has existed nationally for about 12 years.  We offer support to people 60+ who are sad, anxious, depressed or are experiencing life issues for which they want support in El Paso County Colorado.

PEARLS was developed at the University of Washington in the late 1990s. The aim was to provide supportive companionship and practical strategies to improve the lives of older adults. The human needs which PEARLS addresses affects more than 6.5 million Americans in that age group, but only about 10% get treatment, according to the National Alliance on Mental Illness. Some of the potential consequences of a lack of support or treatment is increasing isolation and physical decline. Frequently, we run across folks that just feel stagnant: “I’m at that certain age, this is how I am now.’”

Cynthia, our coach, says older generations often view receiving mental health care as embarrassing or shameful, so they often won’t seek help. Often, they are not even aware they’re feeling depressed, remarking, “it’s just the way it’s supposed to be!” 

The PEARLS program is offered at no charge to clients. It identifies 60+ folks who may be just starting to struggle or even at-risk seniors who have gone for long periods with little support. Typically, our coach meets the client in his or her home for six to eight sessions through 5 to 6 months to learn skills for goals they have set so they can make behavior changes to diminish their depression and isolation.

The PEARLS Program of Colorado and those in other states have provided services to hundreds of persons. Clients are often the best spokespeople for the effectiveness of the program. One individual commented, “I’m not so sad all the time and unreasonable about everything,” “I would recommend this program to most people,” and, “it changed my way of thinking.”

Increased self-sufficiency is also one of the program’s aims. “If people take care of their emotional health, they’re more likely to care for themselves physically,” said Roberta “I think a program like this can help individuals be less dependent on the system.”

Research supports clients’ comments on their experiences. PEARLS recipients were likely to have a reduction in depression and anxiety symptoms, improved quality of life, and a trend in decreased hospitalizations.

Care coordination is also a key element. Our staff has decades of experience working with 60+ members of our community.  They are well-acquainted with additional services that might be needed and assist clients in access to them. Building a wider network of supports strengthens individuals’ ability to maintain the gains they made while working with the PEARLS coach.  

To contact a PEARLS coach call or text 719 459-2017  Website: pearlsprogram.net

Jumbo Reverse Mortgage Loan

Homeowners who are looking to use a reverse mortgage to tap into their home equity now have a new option at their disposal. The only private reverse mortgage available for the last few years was Generation Plus, meant for borrowers with home values exceeding 1 million. In addition, Urban Financial of America abolished the dry spell in the private reverse mortgage industry and introduced jumbo reverse mortgages.

Jumbo reverse mortgage loans are targeted at new homeowners with homes valued upwards of $600,000. These loans come with some essential key features that make them stand out, providing more alternatives and borrowing power for homeowners with high-valued properties.

A jumbo reverse mortgage can help you tap into your home equity during retirement and help you face everyday challenges. When you meet the age and credit score requirements, the jumbo reverse loans can be a place to age and increase your cash flow with rising healthcare costs, education, or helping out other family members.

Even with millions of dollars in home equity, we all have to balance our budget at the end of the month.

How does a Jumbo reverse mortgage loan work?

Buying a house is a life-changing event in our lives, and it requires a lot of financial planning. Working on your credit score and saving enough for a down payment are crucial first steps towards homeownership. On top of this, it involves choosing the lowest mortgage rates and negotiating favorable terms. Unfortunately, depending on your chosen area, your home may be worth more than $679,650, and you won’t qualify for a traditional government-insured reverse mortgage. Instead, you’ll need to opt for a jumbo loan.

Jumbo reverse mortgages, frequently called proprietary reverse mortgages, differ from conventional reverse mortgages. The loan amounts exceed the conforming limits set by the Federal Housing Finance Agency, and therefore cannot be purchased, guaranteed or backed by Fannie Mae or Freddie Mac.

Private firms and larger banks are generally responsible for jumbo reverse mortgages. However, mortgagers are subject to the same obligations under traditional reverse mortgages to finance their high-valued property.

Homeowners must be over 62 years old and continue to live in their own home as their primary residence. In addition, they must have the financial resources to continue to maintain the property.
When the reverse mortgage loan idea was first conceived, people quickly began to recognize that the common was a brilliant solution to common challenges. Using the equity in your home, a reverse mortgage is a financing option that eliminates monthly mortgage payments and taps into your equity. Consequently, the loan doesn’t need to be repaid as long as the borrower continues living in his home. However, this doesn’t mean that a reverse mortgage is free. Borrowers are still responsible for paying property taxes, insurance, and home maintenance. Meanwhile, the loan accumulates monthly interest, and you’ll repay it at the end of the loan’s lifespan.

Jumbo reverse mortgage loan to value

So, what percentage of your home appraisal can you actually access? Several factors determine how much equity you can access with this loan. For most traditional mortgages, the maximum loan-to-value ratio without a PMI is typically 80 percent. However, depending on the lender’s requirements, it varies slightly. For reverse mortgages, the LTV isn’t used as a critical determining factor in the approval process. Instead, the LTV ratio is influenced by other key factors, including the borrower’s age, current interest rate, and the home’s sales price. The current rate sits at approximately 50 to 55%. 

High loan limitsMany seniors with an existing mortgage of over 1 million dollars qualify for a reverse jumbo loan. In general, homeowners with 50% to 55% or more equity have a good chance of being approved.

When you apply for a jumbo reverse mortgage, you can potentially borrow hundreds of thousands more than the HECM loan limits.

With jumbo reverse mortgages, seniors can borrow up to 6 million worth of home equity. The exact amount depends on the borrower’s eligibility, age, house value, and how much is owed on the property. With a large amount of cash at your disposal, you’ll gain more control over your assets and investments. Capitalize on a program that takes a glance at the total value of your home.

Since Jumbo reverse mortgage lenders aren’t FHA approved nor guaranteed, lenders don’t need to follow FHA guidelines. Instead, they mimic FHA protections and provide their adaptation to their guidelines.

Jumbo reverse mortgage benefits

1) Retain Home Ownership

Undoubtedly, the critical benefit behind a reverse mortgage is to keep one of your most significant assets. Contrary to what some people believe, lenders don’t take away your ownership when you borrow against it. If you adhere to loan terms and continue to pay your taxes and insurance, you will remain the legitimate proprietor.

2) Stay financially stable

One of the many benefits of a jumbo reverse loan is your ability to boost your finances by tapping into your equity. In addition, private companies offer complete flexibility when it comes to payout options, including lump sum, monthly payments, or line of credit.

Seniors can benefit from an increased standard of living and allow them to live their dreams. When your house is worth $1,000,000 or more, you want to access your home’s equity and spend it whatever way you want. It’s an excellent way to use the value of your property to fund part of your retirement.

3) No Insurance Premiums

Private reverse mortgages don’t require insurance. As a result, borrowers aren’t left behind with a pile of upfront or annual insurance premiums they face when borrowing the government-insured program.

4) No Monthly Mortgage Payments

Many borrowers use a jumbo reverse mortgage to eliminate monthly payments while allowing seniors to live in highly valued areas. While traditional mortgages allow refinancing small mortgages, jumbo products allow borrowers to refinance several hundred thousand. So not only will you lessen your burden, but you’ll also bring in an additional source of income.

5) Fixed-rate loans

Borrowers taking out jumbo reverse mortgages don’t need to worry about interest rate hikes. Jumbo reverse mortgages have various fixed interest loans, which means your loan size will increase with predictability. This is uncomplicated to plan your finances!

6) A Reverse mortgage loan is generally a non-recourse loan

One of the best benefits of a reverse mortgage is that it is generally a non-recourse loan. You’re protected if your loan balance is higher than the value of your home. Your lender cannot seek to seize your assets and must absorb the loss.

Lower Cost

It was just a few years ago that people were ranting about how expensive reverse mortgages we’re. Today, it’s no longer the case. Corelogic determined that the difference is due to Fannie Mae and Freddie Mac’s continuously increasing guarantee fees. Since 2010, it nearly tripled, and since jumbo loans are too big to be purchased by this giant corporation, it leaves jumbo loans untouched.

Reverse mortgages backed by the FHA carry some hefty financing charges. The biggest one being a 2% insurance premium.

Meanwhile, the higher jumbo rates have come down from 7.5% to as low as 4.95% and require no additional monthly insurance charges as required by government-backed programs. This equates to savings totaling $16 447,50$ compared to a HECM jumbo program. In addition, jumbo loans benefit from no upfront or recurrent mortgage premiums, and lenders can often waive origination fees and pay upfront costs.

Applicants face strenuous observation and often have stellar credit scores. Therefore, it becomes advantageous for lenders and advantageous enough to offer better terms.

The jumbo programs make much sense when you consider all the improvements, lower rates and fees, higher loan amounts, and underwritings.

Are Jumbo reverse loans still available?

The recent changes made by the HUD make it easier for Jumbo reverse mortgages to re-enter the market, offering a product exceeding the lending limit of $822,375.

Jumbo rates recently dropped, and many borrowers find that the range of jumbo products is more appealing than ever for higher valued homes. Potential homebuyers and refinancers see an opportunity to secure a lower rate, even if the pool of lenders is scarce with the pandemic. Borrowers may face stricter requirements and more documents during the process to ensure their repayment capability. The excellent news is jumbo reverse mortgages are still available.

Sources

Michael Branson (November 16, 2019). Lowest Cost Reverse Mortgage Surprisingly Affordable!
https://reverse.mortgage/lowest-cost
Mortgage News -7thlvl. 5 Major Benefits of Reverse Mortgage Loans
https://mortgagenewschannel.com/5-major-benefits-reverse-mortgage-loans/
Kathleen Coxwell – New Retirement (August 25, 2014). New Jumbo Reverse Mortgage; HomeSafe Reverse Mortgage Brings Additional Benefits
https://www.newretirement.com/retirement/new-jumbo-reverse-mortgage-homesafe-reverse-mortgage-brings-additional-benefits/
Michael Branson (March 12, 2021). 2021 Jumbo Reverse Mortgages: Lenders Rates & Limits.
https://reverse.mortgage/jumbo
Brett Stumm What is a Jumbo Reverse Mortgage and Its Pros & Cons?
https://brettstumm.com/jumbo-reverse-mortgage/
LendingTree.com (June 5th, 2018). Understanding Jumbo Reverse Mortgages
https://www.lendingtree.com/home/reverse-mortgage/understanding-jumbo-reverse-mortgages/
Alpha Mortgage Reverse Mortgages Maximum Loan-to-Value
https://reversemortgagevalue.com/loan-to-value/
Jackie Lohrey | Sapling.com How to Use My Home As Collateral for a Loan
https://www.sapling.com/5489036/use-home-collateral-loan
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Get to Know Kevin A. Guttman Reverse Mortgage Specialist
A Jumbo Reverse mortgage doesn’t have to be complicated when you have a professional help you along the way. Contact our team today to get the wheels in motion a (877) 251-9709
image source: Pixabay

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