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Planning Intermediate:
Reverse Mortgages
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Choose wisely. There is only one correct answer to each question.
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1.
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.
True
False
False. There are standards you must meet to keep the home in saleable condition.
2.
What type of reverse mortgage is the most common?
Choose wisely. There is only one correct answer.
Proprietary reverse mortgage
Single-purpose reverse mortgage
Home equity conversion mortgage (HECM)
Home equity conversion mortgage (HECM). This type is the most common.
3.
If, after selling a home to pay off a reverse mortgage, there is money left over, what happens to it?
Choose wisely. There is only one correct answer.
The lender keeps it
The borrower or the borrower's heirs keep it
The lender splits it evenly with the borrower or the borrower's heirs
It is taxed for capital gains
The borrower or the borrower's heirs keep it. Any leftover money belongs to them.
4.
A reverse mortgage _______.
Choose wisely. There is only one correct answer.
Is only available to homeowners age 62 or older
Should be considered only by those who are confident of a long life span
Offers only a single payment option
Need not be repaid for ten years
Is only available to homeowners age 62 or older. The other statements are false.
5.
All lenders offer reverse mortgages.
Choose wisely. There is only one correct answer.
True
False
False. Only some of them do.
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