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* Date of Birth

month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec year 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 1971 1970 1969 1968 1967 1966 1965 1964 1963 1962 1961 1960 1959 1958 1957 1956 1955 1954 1953 1952 1951 1950 1949 1948 1947 1946 1945 1944 1943 1942 1941 1940 1939 1938 1937 1936 1935 1934 1933 1932 1931 1930 1929 1928 1927 1926 1925 1924 1923 1922 1921 1920 1919 1918

* Estimated House Value:

<amount> $30,000 or Less $30,000 – $39,999 $40,000 – $49,999 $50,000 – $59,999 $60,000 – $79,999 $80,000 – $99,999 $100,000 – $119,999 $120,000 – $139,999 $140,000 – $159,999 $160,000 – $179,999 $180,000 – $199,999 $200,000 – $219,999 $220,000 – $239,999 $240,000 – $259,999 $260,000 – $279,999 $280,000 – $299,999 $300,000 – $319,999 $320,000 – $339,999 $340,000 – $359,999 $360,000 – $379,999 $380,000 – $399,999 $400,000 – $419,999 $420,000 – $439,999 $440,000 – $459,999 $460,000 – $479,999 $480,000 – $499,999 $500,000 – $519,999 $520,000 – $539,999 $540,000 – $559,999 $560,000 – $579,999 $580,000 – $599,999 $600,000 – $619,999 $620,000 – $639,999 $640,000 – $659,999 $660,000 – $679,999 $680,000 – $699,999 $700,000 – $719,999 $720,000 – $739,999 $740,000 – $759,999 $760,000 – $779,999 $780,000 – $799,999 $800,000 – $819,999 $820,000 – $839,999 $840,000 – $859,999 $860,000 – $879,999 $880,000 – $899,999 $900,000 – $919,999 $920,000 – $939,999 $940,000 – $959,999 $960,000 – $979,999 $980,000 – $999,999 $1,000,000 – $1,249,999 $1,250,000 – $1,499,999 $1,500,000 – $1,749,999 $1,750,000 – $1,999,999 $2,000,000 – $2,249,999 $2,250,000 – $2,499,999 $2,500,000 – $2,749,999 $2,750,000 – $2,999,999 $3,000,000 – $3,499,999 $3,500,000 – $3,999,999 $4,000,000 – $4,499,999 $4,500,000 – $4,999,999 $5,000,000 – $5,499,999 $5,500,000 – $5,999,999

Mortgage Balance

No Mortgage $1 – $30,000 $30,000 – $39,999 $40,000 – $49,999 $50,000 – $59,999 $60,000 – $79,999 $80,000 – $99,999 $100,000 – $119,999 $120,000 – $139,999 $140,000 – $159,999 $160,000 – $179,999 $180,000 – $199,999 $200,000 – $219,999 $220,000 – $239,999 $240,000 – $259,999 $260,000 – $279,999 $280,000 – $299,999 $300,000 – $319,999 $320,000 – $339,999 $340,000 – $359,999 $360,000 – $379,999 $380,000 – $399,999 $400,000 – $419,999 $420,000 – $439,999 $440,000 – $459,999 $460,000 – $479,999 $480,000 – $499,999 $500,000 – $519,999 $520,000 – $539,999 $540,000 – $559,999 $560,000 – $579,999 $580,000 – $599,999 $600,000 – $619,999 $620,000 – $639,999 $640,000 – $659,999 $660,000 – $679,999 $680,000 – $699,999 $700,000 – $719,999 $720,000 – $739,999 $740,000 – $759,999 $760,000 – $779,999 $780,000 – $799,999 $800,000 – $819,999 $820,000 – $839,999 $840,000 – $859,999 $860,000 – $879,999 $880,000 – $899,999 $900,000 – $919,999 $920,000 – $939,999 $940,000 – $959,999 $960,000 – $979,999 $980,000 – $999,999 $1,000,000 – $1,249,999 $1,250,000 – $1,499,999 $1,500,000 – $1,749,999 $1,750,000 – $1,999,999 $2,000,000 – $2,249,999 $2,250,000 – $2,499,999 $2,500,000 – $2,749,999 $2,750,000 – $2,999,999 $3,000,000 – $3,499,999 $3,500,000 – $3,999,999 $4,000,000 – $4,499,999 $4,500,000 – $4,999,999 $5,000,000 – $5,499,999 $5,500,000 – $5,999,999

Jumbo Reverse Mortgages – also known as Proprietary Reverse Mortgages are loans designed and offered by financial institutions that enable owners of high value homes to access greater amounts of their home equity than is available from the government insured HECM Reverse Mortgages.

What Kinds of Reverse Mortgage Loans Are Currently Available?

Currently, the only kind of Reverse Mortgage that is widely available is the Home Equity Conversion Mortgage (HECM) family of loans, the HECM Standard and the HECM Saver programs. These loans are created and insured by the federal government and managed by the Department of Housing and Urban Development (HUD).

The current relative absence of Jumbo Reverse Mortgages is largely due to the credit crunch that is being experienced world wide. A credit crunch is generally defined as a decrease in the availability of loans. Jumbo Reverse Mortgages are at particular risk during this time for a variety of reasons, including:

• Declining house values – The home is the collateral on the Reverse Mortgage loan, if the home’s value declines, it is a much riskier loan for the lender to issue.
• General perception of risk regarding the solvency of private banking institutions -- Jumbo Reverse Mortgages were proprietary products designed by private institutions and were not insured by the Federal government as the HECM is.
• Limited secondary market for these loans – Loans are often originated by one bank and then resold on a secondary market. Currently Wall Street has limited demand for these loans from banks that originate them.

In summary, as housing values have been declining and the credit crunch has impacted a bank’s ability to resell mortgages, Jumbo Reverse Mortgages have become too risky for most lenders to offer.

The Good News - Loan Limits have increased, as Jumbo Reverse Mortgages are Beginning to Return

Designed to help seniors access more of their home equity to fund retirement expenses during this economic crisis, Congress passed legislation in early 2009 that increases Reverse Mortgage loan limits to $625,500. The new loan limit is effective for loans in 2009 and has remained in effect.

Reverse Mortgage loan limits were as low as $200,160 before this change so this is a huge increase which could significantly improve your financial situation. While $625,500 is the maximum now, this loan limit may be extended or returned to the previous limit of $417,000 for most areas of the country.

Your HUD-approved lender will determine your actual loan amount by using the current loan limit, the value of your home, prevailing interest rates, the amount of any outstanding loans against your house and your age.

In addition, with the economy beginning to recover from its downturn of the past several years, and the gradual loosening of the credit markets, some companies are beginning to offer Jumbo Reverse Mortgages again in certain states. At present, these Jumbo programs are restricted only to certain areas, but they are expected to expand to more states soon.

Why the HECM Loan Limit Increase is Good News for Owners of High Value Homes

The HECM has always been the most popular Reverse Mortgage because it offers the highest amount of money to homeowners of average-valued houses, it is a government backed loan with relatively low interest and regulated fees.

For homeowners of high value homes – usually homes valued at $600,000 or more – a Jumbo Reverse Mortgage usually offered significantly higher amounts of money to the homeowner. The HECM product could not offer higher loan amounts because they were legislated with loan limits – they could not lend more than pre-specified amounts. In fact, the HECM product was originally designed specifically for low and medium value properties.

Other options for high value homeowners seeking access to their home equity include: Home Equity Conversion, Downsizing and Home Equity Loans.

What Is a Jumbo Reverse Mortgage or Proprietary Reverse Mortgage?

Jumbo Reverse Mortgages – also known as Proprietary Reverse Mortgages – are Reverse Mortgages that are structured and backed by private companies. (The HECM programs, by contrast, are structured and insured by the federal government.)

Any broker licensed by the Federal Housing Administration (FHA) can offer the HECM and any broker licensed by the private company that structured a proprietary reverse mortgage can offer that product.

How Does a Jumbo Reverse Mortgage Differ From Other Reverse Mortgages?

A Jumbo Reverse Mortgage is a Reverse Mortgage product designed for high value homes – typically homes valued above the $625,000 level although the specifics of the loan will depend on the borrower’s age and location.

So, the main difference is simply that it is possible to get more money out of a high value home with a Jumbo Reverse Mortgage than from other Reverse Mortgage products.

Who Offers a Jumbo Reverse Mortgage? What are the Different Kinds of Jumbo Reverse Mortgages?

Jumbo Reverse Mortgages are Reverse Mortgage loans structured by private firms. Like the HECM programs, they are heavily regulated, but they are proprietary products offered directly by private institutions.

More proprietary reverse mortgage programs may be reintroduced as the housing and credit markets stabilize to meet the evolving needs of senior homeowners:

• Generation Mortgage: Generation Mortgage offered a jumbo Reverse Mortgage product called, "Generation Plus."
• Bank of America: Bank of America offered The Independence Plan, a Jumbo Reverse Mortgage originally created by Reverse Mortgage of America which is now owned and operated by Bank of America.

Click here if you would like to connect with one of these Reverse Mortgage lenders.

What Are the Downsides of a Jumbo Loan or a HECM Reverse Mortgage With a High Loan Amount?

The obvious downside is the same as the upside… with a Jumbo Loan – or a HECM Reverse Mortgage with a high loan amount -- you are simply borrowing more money. And, if you take out that money in cash then you will be paying more interest.

However, many high value homeowners choose to take their loans as a line of credit where you only pay interest on the sum you actually use. And, as with all Reverse Mortgages, you don’t have interest payments during the term of the loan nor should you owe more than the value of the home at the time the loan is ended. And, so long as you reside in the home, you will always retain ownership.

Further good news is the fact that the HECM typically has charged a lower interest rate than the Jumbo Reverse Mortgage products.

Are There Limits on How to Spend a Jumbo Reverse Mortgage? Are There Limits on How to Spend HECM Reverse Mortgage Loan Amounts on High Value Homes?

No.

There are absolutely no limits on how you can spend your Jumbo Reverse Mortgage. Nor are there any with a HECM. However, you must pay off any liens against your home, including any balance on your mortgage – which is true of the Jumbo products as well.

Retirees have used Reverse Mortgages to fund:

• Living Expenses
• Travel
• Long Term Care
• Medical Procedures
• Additional insurance
• Vacation Homes
• Anything and Everything

To connect with a prescreened HUD-approved Reverse Mortgage lender, continue here.