Income Intermediate: Reverse Mortgages

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1.
A reverse mortgage _______.
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Is only available to homeowners age 62 or older. The other statements are false.
2.
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.
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.
When considering whether to take out a reverse mortgage, you should consider your ability to keep the home in good condition because _______.
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The home may need to be sold to pay off the loan. In order to receive adequate payback, the lender will want to ensure that the home is attractive to buyers.
5.
All reverse mortgages are insured by the federal government.
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False. The majority are, but not all.