Generation Mortgage Company Introduces The Generation Plus Jumbo Reverse Mortgage Loan
Yahoo Finance, February 7th, 2006
Generation Mortgage Company(TM) today announced the introduction of the
Generation Plus(TM) jumbo reverse mortgage loan. The firm designed the
Generation Plus loan to enable owners of highly valued homes to potentially
receive the most funds available in the market today, at the lowest available
rate.
"We're pleased to announce the launch of the Generation Plus, as it delivers on
our goal to provide significant savings to our senior customers while answering
a growing demand for more competitive loan products," stated Joe Morris, CEO of
Generation Mortgage. "With this offering, a typical 75- year old borrower whose
home is valued at $750,000 will gain approximately $25,000 in additional funds
compared to other jumbo loan products."
While the prevailing margin on a typical non-conforming, or jumbo, reverse
mortgage loan is currently 3.5% over six-month LIBOR, the margin on a Generation
Plus loan is 3.125% over one-month LIBOR, reducing interest costs by greater
than 0.375% (or three-eights of a point) for the typical jumbo borrower.
The product offers additional innovations that set it apart from most
competitors. For example, the unused credit line on the Generation Plus loan
will grow at the initial loan rate: The growth rate on most competing products,
however, is typically set lower than the loan rate. "Borrowers utilizing
Generation Plus will pay less interest on the money they have borrowed and see
their unused borrowing capacity grow more quickly than it would with most
competing products," noted Sherry Apanay, Senior Vice President at Generation
Mortgage.
Read more of this article. Learn more about Reverse Mortgages.