Finance
A reverse mortgage in Arizona is available to homeowners who are:
AAny age with sufficient equity
BAt least 62 years old with significant equity in their primary residence✓ Correct
CAt least 55 years old
DAny age, provided they are disabled
Explanation
A reverse mortgage (HECM) is available to homeowners who are at least 62 years old and have significant equity in their primary residence. The loan does not require monthly payments and is repaid when the home is sold or vacated.
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Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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