According to reverse mortgage experts, jumbo reverse mortgages are financial products that allow older homeowners to gain accessibility to funds without selling their home. The option is obtainable for properties valued at $625,000 and over. This type of financing is provided to homeowners 62 years old and above.
Access to equity
The concept behind jumbo reverse mortgages is to be able to access the equity which built up within the home since it was purchased. Equity includes the difference between a home’s value and all existing mortgage. A homeowner does not have to qualify for this kind of mortgage as the quantity of the loan will be calculated based on the quantity of the home’s equity and homeowner’s age.
As the money under the jumbo reverse mortgage is advanced, it’s used to pay any debt off secured by the home first. After all secured lines of credit or existing mortgages are paid off, a homeowner is offered the balance of the funds of the loan. Closing expenses for the reverse mortgage also are deducted from the proceeds of the loan.
As long as a borrower is residing in the home, she or he isn’t required to make any loan payments. The money obtained with a jumbo reverse mortgage may be released as a lump sum or monthly payments. An additional choice for obtaining the funds are lines of credit.
The homeowner, with this last option, has lots of flexibility. She or he may access money as necessary, up to the available limitation. Interest upon the funds does not begin to accrue until they’re taken from the credit line.
Funds can be used any way homeowner sees fit
According to reverse mortgage experts, with jumbo reverse mortgages, the homeowner may use the funds for any purpose they see fit. The money may be utilized to pay living expenses or clear unsecured debt. A few homeowners who determine to receive a jumbo reverse mortgage utilize the money to pay for travel experiences or assist their kids or grandkids financially.
Jumbo reverse mortgages are good choices for older homeowners who must access a substantial amount of money. If you’re considering this choice and you just require a few funds, a better option might be to put in an application for a home equity loan. However, if you have to access a larger amount of money, it might be the right choice for you.
For more information on our reverse mortgage experts, contact Longbridge Financial today.
