by KYW's Salil Gutt

One segment of the mortgage industry is still hot. Reverse mortgages to seniors. Sensing opportunity many more players have jumped into this business. Competition has made things better for consumers resulting in lower costs and a broader range of offerings.

With a reverse mortgage, a lender makes a lump sum or periodic payments. The borrower keeps control of the house and does not have to repay any part of the loan as long as they live there. Departure from the property or death will result in loan repayment along with the accrued interest.

Here are some changes.

Lenders are lowering the age to 60 from the prior 62. They are starting to offer fixed rate loans rather than the adjustable rate mortgages only. They are offering loans against second homes and vacation rentals -a very new development.  Closing costs vary.  For an interest rate loan around 5% the fees could be as high as 7% of the amount borrowed. With no closing costs the interest rates could be around 9 to 10%.  It is smarter to choose a higher interest rate with no closing costs if you plan to repay the loan within five years.