Income Intermediate: Reverse Mortgages

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1.
All lenders offer reverse mortgages.
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False. Only some of them do.
2.
A home on which you are taking out a reverse mortgage _______ your primary residence.
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Must be. This is a requirement.
3.
Which of the following is true of reverse mortgages?
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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.
4.
All reverse mortgages are insured by the federal government.
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False. The majority are, but not all.
5.
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.