Jumbo or Propriety Reverse Mortgages

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Jumbo reverse mortgages have been designed especially for senior with substantial home equity or higher-valued homes. Jumbo loans are also known as propriety reverse mortgage. Harvard Home Mortgage mortgage represents several of the major jumbo reverse mortgages.

Unlike the FHA insured reverse mortgage (HECM), Jumbo reverse mortgages have virtually no limit on home value or the amount of the loan. The amount of money available to the homeowner may be substantially greater with a Jumbo reverse mortgage than with other options.

Jumbo loans feature a number of options that allow you to maximize the benefits depending on your unique needs, including eliminating upfront fees and closing costs. Generally, there are three options: the Credit Line Option, the Combo Option, and the All Cash Option. With Jumbo reverse mortgage options, the rate is reset semiannually; there is also a lifetime interest rate cap. A servicing fee is automatically financed on the account each month.

In addition, there is no equity or appreciation sharing and no maturity fee.

As a borrower you may elect to limit the loan obligation to a stated percentage of the full market value of the home. Should you choose this option the amount of the loan will be less than the amount for which you may borrower otherwise qualify. Borrowers may choose to protect a minimum of 10% up to a maximum of 50% of their home equity. This permits greater flexibility assuring a percentage of equity remaining to benefit the borrower or heirs upon loan maturity.