A 4 million dollar reverse mortgage – really? A colleague of mine just completed a 4 million dollar jumbo reverse mortgage for a gentleman who only wanted to lock in a fixed rate, pay off his current mortgage and get no additional cash. He is a wealthy investor and didn't need cash, he just didn't want any mortgage payments.
His thinking? The interest rate on the fixed loan was less than he could earn with his investments. By keeping what would have been his monthly mortgage payment, and investing those funds, he was able to grow his investment accounts faster than the interest rate on his new reverse mortgage that was accruing.
He was simply deferring his mortgage payments to the great benefit of his bottom line!
Not many are in that position but it shows the flexibility of the jumbo reverse mortgage.