Income Intermediate: Reverse Mortgages

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1.
All reverse mortgages are insured by the federal government.
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False. The majority are, but not all.
2.
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.
3.
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.
4.
If you have a reverse mortgage, the balance of your loan _______.
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Increases over time. Your balance actually increases, due to several factors.
5.
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.