Generation Mortgage Offers Jumbo Reverse Mortgage
June 7th, 2010
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Generation Mortgage is offering a jumbo reverse mortgage for homes that are worth up to $6 million. The jumbo reverse mortgages cater to seniors with homes valued over $1 million. Proprietary reverse loans, private loans backed by the companies that develop them, have been pretty much nonexistent as the housing market has struggled.
House Rich, Cash Poor
“Many owners of higher-valued homes find themselves in the position of being house rich and cash poor,” Jeff Lewis, chairman of Generation Mortgage, said in a statement. “With our Plus loan, these owners can receive the liquidity they require without having to sell their home or other assets. And, with an improving real estate market, this offering becomes even more attractive.”
Generation Mortgage’s jumbo reverse mortgage is targeted at homeowners with a minimum home value of $500,000. The fixed-rate reverse loans are available in most states. Use a jumbo reverse mortgage calculator to determine how much you might be able to borrow based upon your age, home value, and current interest rates.
Reverse Loan Proceeds
If you intend to cash out home equity with a jumbo reverse mortgage, proceed with caution. While reverse mortgage funds can be used for any purpose, it is crucial to have a spending plan in place before cashing out such large amounts of home equity.
A housing counselor can discuss the pros and cons of reverse mortgages, including various ways you can receive the money. Funds can be received as a lump sum, line of credit, or monthly payments. Choose a counselor who is approved by the Department of Housing and Urban Development (HUD). You have the option of doing counseling sessions face-to-face or by phone.