Income Intermediate: Reverse Mortgages

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1.
If, after selling a home to pay off a reverse mortgage, there is money left over, what happens to it?
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The borrower or the borrower's heirs keep it. Any leftover money belongs to them.
2.
Some types of reverse mortgages are offered by local governments.
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True. They are not offered everywhere, however.
3.
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.
4.
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.
5.
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.