Finance
A 'reverse mortgage' in Alaska is a loan product primarily designed for:
AFirst-time homebuyers with no down payment
BHomeowners 62 or older who wish to convert equity into tax-free cash without monthly payments✓ Correct
CInvestors who want to refinance investment properties
DHomeowners in foreclosure who want to stop the process
Explanation
A Home Equity Conversion Mortgage (HECM) — the most common reverse mortgage — allows homeowners 62 and older to convert part of their home equity into cash, a line of credit, or monthly payments without having to sell the home or make monthly loan payments. The loan is repaid when the borrower dies, sells, or permanently moves out.
Related Alaska Finance Questions
- The Truth-in-Lending Act (TILA) requires lenders to disclose the:
- Under the TILA-RESPA Integrated Disclosure (TRID) rules, a lender may charge the borrower more than the Loan Estimate disclosed amount for which fee?
- A buyer in Alaska uses an FHA loan and makes a down payment of 3.5% on a $280,000 home. What is the amount of the down payment?
- What is the primary advantage of a 15-year mortgage compared to a 30-year mortgage at the same interest rate?
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- The discount points paid by a borrower at closing primarily serve to:
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