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The Difference Between a Jumbo Reverse Mortgage and a Regular Reverse Mortgage

By November 26, 2019 January 7th, 2020 No Comments
A large two story white house with a pool and dock for boats.

As we grow up, we start hearing more about mortgages, although it isn’t until you’re an actual adult that you actually begin to understand what a mortgage is, and how does it work. So, if you’re reading this article, it probably means you’re over 21 and looking to understand one of the most complex financial figures.

Now, a mortgage is one thing, but a jumbo reverse mortgage is a whole different subject on its own. That being said, if you want to understand what a jumbo reverse mortgage is, and how does it work, first you gotta take a look at what a reserve mortgage is.

What Is a Regular Reverse Mortgage?

Reverse mortgages are very similar to regular, common mortgages, in the sense that they are both financial figures that allow the house owner to borrow money using their house as payment security. However, the way the payment is finally paid, is what separates these two types of mortgages.

You see, by using a reverse mortgage, the owner of the home can use their house as a security to borrow money, and still keep the house to their name while making the loan.
However, unlike a regular mortgage, the loan is finally paid when the owner moves out of the house or doesn’t live in it anymore.

This doesn’t mean the homeowner doesn’t have to make monthly payments, they do. However, the payments are different than with a regular mortgage since, this time, the owner is actually paying property taxes and insurance – all while compromising to keep the house in good condition.

So, What Is a Jumbo Reverse Mortgage?

Now that we have established the difference between a regular mortgage, and a jumbo reverse mortgage, let’s take it one step further and explain what a jumbo reverse mortgage is, and how does it even work (trust us, it might sound complicated, but it really isn’t).

A jumbo reverse mortgage is nothing more than a loan designed by private financial institutions for owners of homes above the HECM limit. With these loans, they allow them to have access to bigger amounts of money.

You might be thinking “But what’s so different about this jumbo reverse mortgage?” Well, just as a reverse mortgage is only available for homeowners that are 62 years old or older, these types of mortgages are available only for people with really high value houses.

To put it simply, jumbo reverse mortgages are a type of reverse mortgages that cater for people whose houses are priced over the $726,625 level. But of course, that’s not the only thing that separates this type of mortgage from the others.

People who are eligible for a jumbo reverse mortgage also don’t have to deal with monthly payments (of course, this can vary depending on the financial institution doing the loan), but in most cases, homeowners don’t have to submit any type of monthly payment throughout the duration of the loan.


To conclude this, you could think of this type of mortgage as a very beneficial option for people with really valuable homes, since it is one of the most flexible types of mortgages in the market. If you’re interested in qualifying, speak with a reverse mortgage specialist to explore your options. You can read more about the jumbo reverse mortgage benefits here.

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