Jumbo reverse mortgage helps senior stay in home

Mortgage adviser: Dominique Stevens. Property type: Singlefamily home in Danville. Loan amount: $1.55 million at 7.75 percent. Loan terms: Reverse amortization. Backstory: A Danville couple had retired from successful careers as local business owners and wanted to utilize a reverse loan to pay off their current $600,000 mortgage.

They had called other reverse lenders, but none had been able to lend on such a high loan balance. Dominique Stevens works for an independent mortgage brokerage, and she has access to reverse loan programs from many different banks. The Jumbo Reverse Loan Program is especially helpful for those with larger mortgage balances.

Stevens went to work obtaining an amortization schedule from the lender that showed her homeowners that not only would the bank pay off their $600,000 mortgage but that they were entitled to receive $900,000 cash back at closing, creating quite a comfortable nest egg for the couple.

Their goal of staying in their home permanently without financial strain was achieved.

The jumbo reverse mortgage program allows adults 62 years of age and older to halt mortgage payments.

The program requires that the home be maintained as a primary residence, and that the homeowner stay current on property taxes and hazard insurance. As non-taxable income, it does not affect Medicare, Social Security or pensions.

Dominique Stevens, Mayfair Mortgage Advisors, (415) 250-8908, dstevens@mayfairmtg.com.