Income Intermediate: Reverse Mortgages

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
If you are receiving payments as part of a reverse mortgage, you aren't obligated to keep your home in good condition.
Choose wisely. There is only one correct answer.
False. There are standards you must meet to keep the home in saleable condition.
2.
If you have a reverse mortgage, the balance of your loan _______.
Choose wisely. There is only one correct answer.
Increases over time. Your balance actually increases, due to several factors.
3.
What type of reverse mortgage is the most common?
Choose wisely. There is only one correct answer.
Home equity conversion mortgage (HECM). This type is the most common.
4.
Which of the following is true of reverse mortgages?
Choose wisely. There is only one correct answer.
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.
What are some factors to consider in evaluating whether a reverse mortgage is right for you?
Choose wisely. There is only one correct answer.
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.