Income Intermediate: Reverse Mortgages

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1.
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.
2.
All reverse mortgages are insured by the federal government.
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False. The majority are, but not all.
3.
With a reverse mortgage, _______.
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Financial counseling may be required as to the pros and cons. These loans can be complicated; regulators and lenders want to make sure they are well-understood.
4.
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.
5.
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.