Reverse mortgages more popular for seniors

March 16, 2009 10:57AM

Many older borrowers are now turning to reverse mortgages, in which
homeowners age 62 or older borrow against their equity. The most
important factors in getting approval for a reverse mortgage are the
value of the home, the existing mortgage and the age of the applicant;
credit history is usually not important, the New York Times said. Reverse mortgages have helped
seniors to avoid delinquency and foreclosure, said Regina Lowrie,
former chair of the Mortgage Bankers Association. The federal stimulus
package recently raised the maximum amount for a reverse mortgage to
$625,500 from $417,000.

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