Reverse Mortgages Exam Questions and Answers 100% Pass

Reverse Mortgages Exam Questions and Answers 100% Pass Reverse Mortgages - Answer- A loan used by qualified homeowners age 62 or older, who have equity in their homes, but little to no income This loan allows the elderly to use the equity in their homes to meet the expenses of living, or tp help pay for home improvements T or F? Borrowers do not have to repay the loan as long as they continue to live in the house - Answer- TRUE What are the 3 types of Reverse Mortgages? - Answer- 1. Single Purpose 2. Home Equity Conversion Mortgage (HECM) 3. Proprietary Mortgages COMMON FEATURES: the mortgage is payable in full when the home is sold or the last surviving homeowner dies Single Purpose Reverse Mortgage: - Answer- • Low cost loans offered to low income borrowers by state and local agencies or non-profit organizations • Borrowers can only use them for the purpose specified by the lender such as payment for home improvements or payment of property taxes Home Equity Conversion Mortgage (HECM) - Answer- reverse mortgages regulated and insured by HUD allow borrowers to receive fixed monthly payments, a line of credit, or a combination available to people who owe little to no money on their home complete counseling to obtain loan Proprietary Mortgages - Answer- These are private loans. They are more expensive but often allow homeowners to borrow more than they can borrow with a HECM. Homeowners with expensive homes who want to borrow more than they can borrow with a HECM may consider this type of reverse mortgage. Reasons why a reverse mortgage may