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Planning Intermediate: Reverse Mortgages

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1.
All reverse mortgages are insured by the federal government.
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False. The majority are, but not all.
2.
If you take out a reverse mortgage, you are still required to pay for mortgage insurance.
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True. Your mortgage insurance premiums pay into a government insurance program designed to protect both you and the lender.
3.
If you are receiving payments as part of a reverse mortgage, you aren't obligated to keep your home in good condition.
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False. There are standards you must meet to keep the home in saleable condition.
4.
All lenders offer reverse mortgages.
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False. Only some of them do.
5.
Which of the following is true of reverse mortgages?
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Reverse mortgages are a type of loan that need not be repaid as long as you own your home. Since these are loans, the money you receive is tax-free.