A jumbo mortgage that works in reverse

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A new jumbo reverse mortgage option has finally surfaced for seniors with higher-value homes who have been seeking to tap more home equity than the federally insured FHA program can offer. The Generation Plus Loan now available through Atlanta-based Generation Mortgage, targets owners over 62, with homes appraising between $500,000 and $6 million. Unlike the popular Home Equity Conversion Mortgage (HECM) offered by HUD, the jumbo reverse mortgage requires no mortgage insurance but the interest rate on the program is higher. According to Jeff Lewis, chairman of Generation Mortgage, the new offer not only fills a niche for current seniors, but it will also serve aging boomers who are still raising children and helping to support their own parents. This "sandwich generation" will eventually need a way to halt their mortgage payments and stay in their homes even though they still have a mortgage. Homeowners with existing mortgages can qualify for a reverse mortgage. ...