Income Intermediate: Reverse Mortgages

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1.
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.
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.
A reverse mortgage _______.
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Is only available to homeowners age 62 or older. The other statements are false.
4.
All reverse mortgages are insured by the federal government.
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False. The majority are, but not all.
5.
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.