Income Intermediate: Reverse Mortgages

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1.

All lenders offer reverse mortgages.

Choose wisely. There is only one correct answer.

True

False

False. Only some of them do.

2.

Some types of reverse mortgages are offered by local governments.

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True

False

True. They are not offered everywhere, however.

3.

If you take out a reverse mortgage, you are still required to pay for mortgage insurance.

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True

False

True. Your mortgage insurance premiums pay into a government insurance program designed to protect both you and the lender.

4.

With a reverse mortgage, _______.

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If the home is jointly owned, both owners must be at least 67

Financial counseling may be required as to the pros and cons

The home can be the borrower's secondary residence

Financial counseling may be required as to the pros and cons. These loans can be complicated; regulators and lenders want to make sure they are well-understood.

5.

A reverse mortgage _______.

Choose wisely. There is only one correct answer.

Is only available to homeowners age 62 or older

Should be considered only by those who are confident of a long life span

Offers only a single payment option

Need not be repaid for ten years

Is only available to homeowners age 62 or older. The other statements are false.

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