Finance
A reverse mortgage allows a homeowner to:
APurchase a home with no down payment
BConvert home equity into loan proceeds without monthly mortgage payments while living in the home✓ Correct
CRefinance an existing loan at a lower interest rate with no closing costs
DTransfer a mortgage to a new buyer without lender approval
Explanation
A reverse mortgage (typically a Home Equity Conversion Mortgage/HECM for FHA-insured products) lets homeowners 62+ borrow against their equity. No monthly payments are required; the loan is repaid when the borrower moves out, sells, or dies.
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