10 min read
HECM vs. Proprietary Reverse Mortgage: A guide for Better choice
Retirement can bring a mix of excitement and uncertainty, especially when it comes to finances. If you’re looking to...
Navigating the maze of financial decisions as you approach retirement can be daunting, and one of the significant choices many homeowners face is whether or not to get a reverse mortgage. If your home's value is considerably higher than the federal limit for reverse mortgages, you may be considering a jumbo reverse mortgage. But how do you select the best lender for this financial tool? Here’s a comprehensive guide to help you make an informed decision.
A jumbo reverse mortgage, also known as a proprietary reverse mortgage, is designed for homeowners with high-value properties that exceed the federal limit set by the Home Equity Conversion Mortgages (HECM) program. It allows homeowners to access a more significant portion of their home equity compared to a traditional HECM. A jumbo reverse mortgage is especially favored in states with high home values, such as California.
Research and Shortlist Potential Lenders
Ask About Fees and Rates
Evaluate Customer Service and Support
Assess Loan Limits
Understand the Terms and Payout Options
Inquire About Counseling Services
Check for Accreditations
Consult with a Financial Advisor
Compare, Compare, Compare!
Choosing the best lender for a jumbo reverse mortgage is no small feat, but with thorough research and a clear understanding of what you want, you can secure a financial arrangement that benefits you. Remember, the goal is to find a trustworthy lender that offers favorable terms, transparent rates, and excellent customer service.
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