Income Intermediate: Reverse Mortgages

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1.
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.
2.
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.
3.
A home on which you are taking out a reverse mortgage _______ your primary residence.
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Must be. This is a requirement.
4.
Some types of reverse mortgages are offered by local governments.
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True. They are not offered everywhere, however.
5.
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.