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.
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.
Michael Branson (November 16, 2019). Lowest Cost Reverse Mortgage Surprisingly Affordable!
Mortgage News -7thlvl. 5 Major Benefits of Reverse Mortgage Loans
Kathleen Coxwell – New Retirement (August 25, 2014). New Jumbo Reverse Mortgage; HomeSafe Reverse Mortgage Brings Additional Benefits
Michael Branson (March 12, 2021). 2021 Jumbo Reverse Mortgages: Lenders Rates & Limits.
Brett Stumm What is a Jumbo Reverse Mortgage and Its Pros & Cons?
LendingTree.com (June 5th, 2018). Understanding Jumbo Reverse Mortgages
Alpha Mortgage Reverse Mortgages Maximum Loan-to-Value
Jackie Lohrey | Sapling.com How to Use My Home As Collateral for a Loan
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
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Who doesn’t love Mothers Day Cookies?
So many of us associate cookies with our mothers baking cookies for special occasions and after-school treats. We have a few ideas for you that makes a plain sugar cookie into a “master piece.”
But first a little history about Mother’s Day…
Mother’s Day is a holiday honoring motherhood that is observed throughout the world. The American origin of Mother’s Day was created by Anna Jarvis in 1908 and became an official U.S. holiday in 1914. While dates and celebrations vary, Mother’s Day most commonly falls on the second Sunday in May and traditionally involves presenting mothers with flowers, cards and other gifts.
To make these Mothers Day cookies, use your favorite sugar cookie recipe. Then, decorate them as you see in the photos. This is a great time for your creativity to shine!
Mothers Day Cookies #1
Mothers Day Cookies #2
Mothers Day Cookies #3
A tip for decorating sugar cookies: Make icing with confectioners’ sugar and milk. Make it fairly thin and ‘paint’ the icing on the cookies with a pastry brush. Thin enough to spread easily but not so thin that it just makes your cookies wet and runs off. For Cookies 2 & 3 above, you might want the frosting a little thicker.
For more Recipes, Click Here & Click Here
In any season of the year, you will love these crock pot recipes. Colder weather calls for warm, home cooked meals, but they are also enjoyable in warmer weather because of the convenience!
These are the days when your crock pot becomes your best friend! “Throw-all-the-ingredients-in-and-walk-away” is definitely my kind of recipe!
We’ve gathered some of the best “comfort food” recipes for you to enjoy below!
Just click on each title for the recipe. Enjoy!
1. Crock Pot Tater Tot Casserole
For more recipes: Soup Recipes
Short on time this Valentine’s week? These Valentine cupcakes are quick and easy.
Make your favorite cupcake recipe or buy plain cupcakes from the bakery.
Use white frosting and red hot candies to decorate them
You now have a simple, eye-catching Valentine’s Day treat.
We suggest that you use white or, even better, red velvet cupcakes.
These flavors will add a special touch to this special day.
These cupcakes are great for both young and old to craft.
This will keep the little ones occupied for quite some time by frosting and putting on the red candies!
Chocolate or Red Velvet cupcake with vanilla frosting and a delicious strawberry to adorn the top!
Enjoy Valentine’s Day with these Cute and Easy-to-Make Valentine Cupcakes!
Just in time for Valentines Day…clever snack ideas for Valentines Day are easy to make. Add a festive touch to this special day with these snack ideas for Valentines Day that even the kids and grand kids can help make.
1) Easy Marshmallow Valentine Treats
Use strawberry marshmallows, dip them in melted chocolate and sprinkle them with little nonpareils. Decorate them with heart picks. So easy and fun!
Source: Marshmallow Valentine Treats
2) Cupid’s Arrows: candy hearts + pretzel sticks
Source: Cupid’s Arrows
3) Heart Kabobs – Made with strawberries, cantaloupe, pineapple, watermelon and black olives.
Source: Via Pinterest
4) Valentine Cinnamon Cookie Crunch Popcorn Mix
This is a printable and can also be used on a tin can treat…for complete instructions:
Snack Ideas for Valentines Day at Your Fingertips!
This is perfect for football season…a football-shaped meatloaf!
Use your favorite meatloaf recipe (or use the one below) and form it into a football shape with a nice ketchup-based sauce and cheese strips for the lacing.
How yummy and fun is that? Your friends and family will be impressed with your creativity. This football-shaped meatloaf is sure to please the “foodies” in the group!
Recipe makes 8 servings
1 1/2 pounds ground beef
1 onion, chopped
1 cup milk
1 cup dried bread crumbs
salt and pepper to taste
2 tablespoons brown sugar
2 tablespoons prepared mustard
1/3 cup ketchup
1. Preheat oven to 350 degrees F (175 degrees C).
2. In a large bowl, combine the beef, egg, onion, milk and bread OR cracker crumbs. Season with salt and pepper to taste and place in a lightly greased 5×9 inch loaf pan, OR form into a loaf and place in a lightly greased 9×13 inch baking dish.
3. In a separate small bowl, combine the brown sugar, mustard and ketchup. Mix well and pour over the meatloaf.
4. Bake at 350 degrees F (175 degrees C) for 1 hour.
5. The finishing touch is cheese strips for the lacing.
(A variation to this football-shaped meatloaf is to substitute some of the ground beef with ground turkey.)
This Football-shaped Meatloaf is sure to please your party guests!
New Year’s Eve is almost here, and most of us enjoy celebrating, however, some of us prefer non-alcoholic beverage choices. These “mocktail” recipes are special enough to wow your guests on New Year’s Eve, and the best part is they’re great for any age, too! Enjoy!!
Click on the titles for the full recipe.
1. Sparkling Raspberry Mocktail
Pair the grape juice with a few other ingredients and you have an elegant non alcoholic drink on your hands!
Something that makes this raspberry mocktail pretty and tasty are the ice cubes. Make them the day before or you can make them in the morning or early afternoon so that by evening they are definitely ready to go.
Enjoy These Refreshing Mocktail Recipes!
For More Recipes - Crock Pot Recipes
You will ‘wow’ your guests with this wonderful Cheese Christmas Tree.
It’s easy to make and is festive as well. It is made with different flavored cheese cubes.
For those limiting their fat intake, look for reduced-fat cheese, such as cheddars and light pepper Jack, which are as delicious as the regular cheddars.
Plus, you can make omelets or fondue with any leftovers!
•5 eight-ounce bars of different cheddars, plain and flavored (or substitute other semi-hard cheeses for variety)
•1 bundle fresh thyme sprigs
•Red grape or “teardrop” tomatoes (can substitute cherry tomatoes or olives)
•1 large white button mushroom
1. Cut each bar of cheese into 1-inch cubes.
2. On large platter or cutting board, arrange cubes in rows to form tree shape, using a different flavor for each row. Separate the rows of cheese with thyme or rosemary sprigs (rosemary looks like an evergreen twig) and rows of grape tomatoes and/or pimento-stuffed green olives.
3. For the star on top, peel the skin from the mushroom and carve a star pattern into it with point of knife.
4. Enjoy the compliments!
Make this Cheese Christmas Tree for your holiday parties!
Can you believe it’s almost Thanksgiving?
As you are planning your menu, crafting and decorating to prepare for the big feast, we have Thanksgiving Food Art dishes for your consideration.
These three Thanksgiving Food Art projects are easy and fun for young and old to prepare (and eat).
Turkey Cheese Ball
This Turkey Cheese Ball is so easy to make. Start with your favorite cheese ball recipe and add pretzels for feathers, jerky stick for the neck, candy corn and candy eyes. Surround your turkey with an assortment of crackers.
Turkey Veggie Tray
This Turkey Veggie Tray will be the hit of your Thanksgiving feast. It is healthy as well as adding a pop of color to the table. You will need the following veggies: cucumbers; celery; carrots; asparagus; green, red and yellow peppers; cherry tomatoes; a small yellow summer squash, and lettuce. Arrange according to the photo and serve with your favorite dip.
Turkey Fruit Plate
What a fun turkey fruit plate made with a pear, grapes, pineapple, blueberries, strawberries, kiwi and Clementines! Set a bowl of fruit dip (yogurt & whipped topping mixed together) nearby and you have a scrumptious appetizer or dinner side dish!
Thanksgiving Food Art is easy and fun to make!
You’ve probably noticed it’s Winter Squash season! Your local grocery store most likely has a variety of squash on display in the produce section, but aside from “looking” seasonal and pretty, many people don’t know what the different varieties of squash are called, yet alone what they can be used for!
Hint: they’re more than decoration! Here’s a handy, dandy crash course on Winter Squash, and their many uses.
This colorful variety is a hybrid of an acorn squash and a sweet dumpling squash. It’s perfect for soups and for roasting.
This Winter squash is pale yellow with green stripes and has an edible skin. Try slicing it into half moons, tossing it in olive oil with salt and pepper and roasting it in the oven for a delicious Fall side dish!
A smaller squash that varies in color from dark green to orange, with a ribbed rind and orange or yellow flesh. When halved for roasting, the acorn squash can act as a festive bowl for soups or fillings.
Here is the easiest way ever to cook Acorn Squash…in the crock pot!
Harvest Acorn Squash
Into the crock pot put cleaned, unpeeled squash. Add approximately 1/4 cup water. Cover and cook one hour on High, then change to Low for 6-8 hours. Split and scoop out seeds from cooked squash. Place melted butter, brown sugar, pepper and dash of cinnamon in cavity of squash. Yummy!!
It’s slim neck and round bottom gives this squash it’s distinctive shape. It has bright orange flesh and a fairly sweet and nutty flavor making it great roasted or as a soup. You can use a vegetable peeler to remove the skin.
It looks like a classic Halloween pumpkin, only a bit smaller. It actually has lots of flesh, and a great pumpkin flavor which makes it great for pie! Try using it instead of canned pumpkin the next time you make a pumpkin pie!
Scraping a fork inside a roasted spaghetti squash will give you strings that closely resemble noodles! It’s mild flavor pairs well with a variety of sauces. It’s a great alternative to pasta!
Jack Be Little
This adorable little guy is actually best used for decorative purposes only. It has very little flesh, which doesn’t make it very practical to use in recipes, but they sure are cute and make great bowls for dip or soup!
Hubbard squash are a fairly large winter squash. They are slightly tear-shaped with dark green to pale grayish blue skins.
Because of their size, they are often sold in pre-cut and seeded chunks which are more appealing to home cooks. Hubbards are sweet with a clear pumpkin flavor. Their extra-thick skins help them store through the winter (up to five months in a cool and dry place). A great way to prepare Hubbard squash is to roast them. They are good seasoned with rosemary and black pepper or roasted and then mashed with plenty of butter and warm spices like cumin or nutmeg.
Squash makes a great Fall or Winter meal or side dish. Pinterest is a great resource for recipes, so add squash to your shopping list soon and take advantage of the season!
Winter Squash – Try It, You’ll Like It!
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Colorado Springs Over 50
We would love to hear from you on ideas you would like us to investigate and write about.