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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 have a reverse mortgage, the balance of your loan _______.
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Increases over time. Your balance actually increases, due to several factors.
3.
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.
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.
What are some factors to consider in evaluating whether a reverse mortgage is right for you?
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All the above. You must be 62 to even be eligible for a reverse mortgage at all; the other factors are important, although not so cut and dried.