Jumbo Reverse Mortgages

More lenders now offerreverse mortgages that are not insured by the federal government, but feature many of the same important consumer protections, including mandatory counseling and asset protection (referring to the non-recourse feature that limits the amount you owe to the value of the home).

Non FHAreverse mortgages are also referred to as "jumbo" loans. Unlike the FHA HECM, which has a national lending limitof $417,000. Jumboreverse mortgages either have no limits, or they're much higher, like $2-4 million. If you live in a home valued higher than $417,000.you may be able to access more equity from a jumboreverse mortgage than you would an FHA HECM.

Most jumboprograms offer lower upfront costs, compared to the FHA HECM, especially if you take all the proceeds upfront as a lump sum. What you save in upfront costs are paid in the form of a higher monthly interest rate. The interest rate charged is typically based on the London Interbank Offered Rate (or LIBOR), plus a margin. Some products offer adjustable rates as well as fixed.

Most lenders that offer the FHA HECM, also offer one or more conventional Jumbo programs. Be sure to ask your lender which conventional programs they offer the interest rates vary from one lender to another.