Jumbo Reverse Mortgage (Getting a Jumbo Reverse Home Mortgage)

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Jumbo Reverse Mortgages, also known as Proprietary Reverse Mortgages were loans designed and offered by financial institutions that enabled owners of high value homes to access greater amounts of their home equity than was available from the government insured HECM Reverse Mortgage.  Until recently there were no other options for homeowners who had high value homes to access more funds unless they went with a jumbo reverse mortgage.  With the recent economic crunch on financial institutions across America the jumbo loans have been ceased at least for a while.  Jumbo reverse mortgage loans have become too risky for most institutions to take on while recovering from the crunch of decreasing property values and less ability to resell mortgages.

However, there is still hope for those of you with high home values to get out more of your equity from your house.  In early 2009 Congress passed legislation that would increase reverse mortgage limits from the previous $200,000 to $625,500.  This new loan limit is effective for loans in 2009 and remains in effect until December 31, 2009.  The jumbo reverse mortgages may stay on the back burner while financial institutions recover and repair, but the good news is that through the Home Equity Conversion Mortgage (HECM) also known as a reverse mortgage, you can change your position from home rich, cash poor to a more balanced security. Your home is one of your largest single investments you have made.  It is time to make it work for you.

Many ask how much interest do I pay for the reverse mortgage? The reverse mortgage rates are offered in either a fixed-interest or variable-interest rate based on the current prime interest rate. The borrower can decide which term is better for their need and the interest rate will be as close to prime as possible dependent upon those terms. The fixed-rate option will allow the borrower to lock into some of the incredible rates we are currently seeing in the market, while the variable-rate may shift as the interest rates begin to rise as predicted over the next year or two.

Getting a Reverse Home Mortgage is easy when you have the right information. Visit ReverseHomeMortgage101.com for more Reverse Mortgage Information, including Interest Rates, Quotes and a full listing of Reverse Home Mortgage Lenders in your area.

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