Income Intermediate: Reverse Mortgages

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1.
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.
2.
Some types of reverse mortgages are offered by local governments.
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True. They are not offered everywhere, however.
3.
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.
4.
All lenders offer reverse mortgages.
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False. Only some of them do.
5.
If you take out a reverse mortgage, you are still required to pay for mortgage insurance.
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True. Your mortgage insurance premiums pay into a government insurance program designed to protect both you and the lender.