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New twist on popular reverse mortgage

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Reverse mortgages definitely are on the rise. Senior homeowners are taking equity out of their longtime residences to make ends meet during their retirement years, and to remodel their homes and help their children and grandchildren with the financial challenges of higher education. In fact, the Home Equity Conversion Mortgage, which is insured by the federal government and is the nation's most popular reverse mortgage, jumped from 43,081 closings in fiscal-year 2005 to 76,276 in fiscal 2006. As reverse-mortgage funds are spent and the interest on these mortgages accrues, the lender gains a greater piece of the home. But let's consider another possibility. What if a family member or a close friend received that equity instead of the lender? Circle Lending, an aptly named, Waltham, Mass.-based company specializing in the organization of family and small-business loans, has introduced Family Advantage, a sort of reverse mortgage that keeps the home in the family -- or with a friend or as...