Home > Planning > Intermediate
Planning Intermediate: Reverse Mortgages

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
A reverse mortgage _______.
Choose wisely. There is only one correct answer.
Is only available to homeowners age 62 or older. The other statements are false.
2.
If you have a reverse mortgage, the balance of your loan _______.
Choose wisely. There is only one correct answer.
Increases over time. Your balance actually increases, due to several factors.
3.
What type of reverse mortgage is the most common?
Choose wisely. There is only one correct answer.
Home equity conversion mortgage (HECM). This type is the most common.
4.
If you are receiving payments as part of a reverse mortgage, you aren't obligated to keep your home in good condition.
Choose wisely. There is only one correct answer.
False. There are standards you must meet to keep the home in saleable condition.
5.
When considering whether to take out a reverse mortgage, you should consider your ability to keep the home in good condition because _______.
Choose wisely. There is only one correct answer.
The home may need to be sold to pay off the loan. In order to receive adequate payback, the lender will want to ensure that the home is attractive to buyers.