Question:

Can I get a jumbo reverse mortgage to pay off existing mortgage debt?

Answer:

If you are a senior over 62, and you own a luxury residence with first and second mortgage to pay for some 20 years left, how do you pay this? Do you have to sell your pretty home? The jumbo reverse mortgage is what lenders have come up with to prevent this from happening.

Jumbo reverse mortgage loans can be used to buy second homes.

Depending on the equity you have on your house, you could get jumbo reverse mortgage financing to pay off your existing mortgage debt, pull cash out and/or set credit lines. The jumbo reverse mortgage credit could even be used for another house purchase - there are no limitations to the purpose you'll be using your money for. Also, you get all this with no monthly payments as long as you live in your home.

Lenders have designed jumbo reverse mortgage loan programs as they found out that reverse mortgage loans have long been used to satisfy first mortgage debt. Also, there were millions of borrowers who refinanced in 2003/04 and who are getting into their senior years with mortgages to pay for more than 10 years from now.

Jumbo and super jumbo reverse mortgage loans have similar guidelines for debt repayment as conforming reverse mortgage amounts. The mortgage balance and interest becomes due to the lender upon the death of borrower or sale.

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