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A reverse mortgage _______.

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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.

With a reverse mortgage, _______.

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If the home is jointly owned, both owners must be at least 67

Financial counseling may be required as to the pros and cons

The home can be the borrower's secondary residence

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.

What type of reverse mortgage is the most common?

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Proprietary reverse mortgage

Single-purpose reverse mortgage

Home equity conversion mortgage (HECM)

Home equity conversion mortgage (HECM). This type is the most common.

If you have a reverse mortgage, the balance of your loan _______.

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Decreases over time

Increases over time

Stays the same over time

Increases over time. Your balance actually increases, due to several factors.

All lenders offer reverse mortgages.

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True

False

False. Only some of them do.

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