B
FB2B0E2D96FC4319B64C1E5F4E711CE5
Not answered. The correct answer is B. A, C, and D are incorrect because they are all advantages of a
reverse mortgage.
1. While a reverse mortgage sounds like a great idea, they are not suitable for every borrower. There are
several disadvantages to reverse mortgages. Which option is a disadvantage?
A. Gives the borrower a stream of income
B. Higher up front costs and higher interest
C. Borrower does not have to make payments
D. The borrower has a choice about how to receive the proceeds
,D
E4FBD2450C0746D2B24C732F9837E6F4
Not answered. The correct answer is D. A, B, and C are incorrect because they are not likely reasons the
Kenskys would want a reverse mortgage.
2. Mr. and Mrs. Kensky are retired on a fixed income and own their home. They have seen
advertisements in their senior newspaper for reverse mortgages. What is the most likely reason why the
Kenskys would want a reverse mortgage?
A. Family vacation
B. College tuition
C. Keep the kids from fighting over the equity in the home
D. Monthly income
, B
22107169BD8B466C913E951F4C1618AC
Not answered. The correct answer is B. A is incorrect because reverse mortgages use a home's equity as
collateral. C is incorrect because repayment is not required until the borrowers no longer use the home
as their principal residence, fail to meet the obligations of the mortgage, or pass away. D is incorrect
because the reverse mortgage requires the home to be the principal residence.
3. A reverse mortgage is a special type of home loan that allows older individuals to convert a portion
of their home equity into cash. Which option is a characteristic of a reverse mortgage?
A. Low interest loan that uses the home's market value as collateral
B. Loan amount is a percentage that is determined by the youngest homeowner's age
C. Low monthly payments due until the borrower dies or sells the house
D. Borrowers are eligible when they no longer use a home as their principal residence
FB2B0E2D96FC4319B64C1E5F4E711CE5
Not answered. The correct answer is B. A, C, and D are incorrect because they are all advantages of a
reverse mortgage.
1. While a reverse mortgage sounds like a great idea, they are not suitable for every borrower. There are
several disadvantages to reverse mortgages. Which option is a disadvantage?
A. Gives the borrower a stream of income
B. Higher up front costs and higher interest
C. Borrower does not have to make payments
D. The borrower has a choice about how to receive the proceeds
,D
E4FBD2450C0746D2B24C732F9837E6F4
Not answered. The correct answer is D. A, B, and C are incorrect because they are not likely reasons the
Kenskys would want a reverse mortgage.
2. Mr. and Mrs. Kensky are retired on a fixed income and own their home. They have seen
advertisements in their senior newspaper for reverse mortgages. What is the most likely reason why the
Kenskys would want a reverse mortgage?
A. Family vacation
B. College tuition
C. Keep the kids from fighting over the equity in the home
D. Monthly income
, B
22107169BD8B466C913E951F4C1618AC
Not answered. The correct answer is B. A is incorrect because reverse mortgages use a home's equity as
collateral. C is incorrect because repayment is not required until the borrowers no longer use the home
as their principal residence, fail to meet the obligations of the mortgage, or pass away. D is incorrect
because the reverse mortgage requires the home to be the principal residence.
3. A reverse mortgage is a special type of home loan that allows older individuals to convert a portion
of their home equity into cash. Which option is a characteristic of a reverse mortgage?
A. Low interest loan that uses the home's market value as collateral
B. Loan amount is a percentage that is determined by the youngest homeowner's age
C. Low monthly payments due until the borrower dies or sells the house
D. Borrowers are eligible when they no longer use a home as their principal residence
