Reverse Mortgages || with 100% Verified Solutions.

Who are reverse mortgages popular products for and why? correct answers Popular for older homeowners who have equity in their homes and little or no income. What do reverse mortgages allow people to do? correct answers Allow older homeowners to use equity in their homes to meet expenses of living or to pay for home improvements Are borrowers required to repay a reverse mortgage? correct answers They are not required to repay as long as they continue to live in the home At what age are reverse mortgages available to? correct answers Borrower must be 62 years or older and must reside in their home When must the mortgage be payable in full? correct answers Mortgage must be payable in full when the home is sold or last surviving homeowner dies What happens to the Interest in a reverse mortgage? correct answers Interest is charged on the outstanding balance and added to the debt What happens to the debt in a reverse mortgage? correct answers it increases with each advancement of credit and with accrued interest What are the 3 types of reverse mortgages correct answers Single purpose reverse mortgage Home Equity Conversion Mortgages Proprietary Mortgages Home Equity Conversion Mortgages correct answers Reverse mortgage that are regulated and insured by HUD. Allow borrowers to receive fixed monthly payments, a line of credit, or a combi of payment and credit line What must borrowers complete if they wish to get a reverse mortgage? correct answers Borrowers must complete counseling with a HUD approved HECM counselor What is a Single Purpose Reverse Mortgage and who can offer it? correct answers Low cost loans offered to low income borrowers by state and local agencies or non-profit What are the specifications of Single Purpose RM correct answers They can only be used for the purpose specified by the lender such as home improvement or paying property taxes. Proprietary Mortgages correct answers Private loans and are more expensive but allow homeowners to borrow more than they can borrow with an HECM Why might a reverse mortgage become due and payable? correct answers Homeowner: Dies moves out of home for longer than a year