For homeowners over the age of 62, there is a borrowing option that is unlike other home equity products. Reverse mortgages can help borrowers avoid monthly payments (and foreclosure!) as long as they keep up with taxes, pay insurance, and maintain the property.
Watch the video to learn more about Reverse Mortgages for Seniors, then test your knowledge at the end of the lesson.
With reverse mortgages, there are no monthly payments, so there’s no risk of foreclosure as long as you…
A. Keep up with taxes
B. Pay your insurance
C. Maintain the property
D. All of the above
In order to qualify for a reverse mortgage, all homeowners listed on the title must be at least 52 years of age, but no older than 72.
A. True
B. False
A proprietary reverse mortgage is a private loan, and lenders have their own rules for these types of reverse mortgages. Proprietary reverse mortgage loans tend to have:
A. Lower borrowing limits
B. Higher borrowing limits
C. Lower interest rates
D. Higher interest rates