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Planning Intermediate: Reverse Mortgages

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1.
All lenders offer reverse mortgages.
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False. Only some of them do.
2.
In a reverse mortgage, _______.
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A lender makes payments to you based on the equity in your home. That is why it is called a reverse mortgage: the lender pays you.
3.
Some types of reverse mortgages are offered by local governments.
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True. They are not offered everywhere, however.
4.
A home on which you are taking out a reverse mortgage _______ your primary residence.
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Must be. This is a requirement.
5.
If, after selling a home to pay off a reverse mortgage, there is money left over, what happens to it?
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The borrower or the borrower's heirs keep it. Any leftover money belongs to them.