Atlanta-headquartered reverse mortgage provider Generation Mortgage has introduced the Generation Plus Estate Guard feature, which allows Gen Plus loan borrowers to halt interest accrual on their homes, depending on real estate market conditions. A Gen Plus loan is a jumbo reverse mortgage designed for owners of higher-valued homes that is structured to give the owners maximum payout at competitive interest rates, the company notes.
"If a borrower's home value is significantly less than their loan balance, the lender will suspend the interest accruing on the loan," explains Jeffrey M. Lewis, chairman of the board at Generation Mortgage. If a future appraisal indicates that the value of the home has risen, the interest rate will resume.
Generation Mortgage adds that a U.S. patent application is pending on the Estate Guard feature.