Finance
What is a 'reverse mortgage' and who is it designed for?
AA mortgage that pays the bank every month; designed for investors
BA loan allowing homeowners 62+ to convert home equity into cash, with no monthly payments required during occupancy✓ Correct
CA mortgage with declining payments; designed for retirees on fixed incomes
DA second mortgage on a rental property; designed for landlords
Explanation
A reverse mortgage (Home Equity Conversion Mortgage/HECM) allows homeowners 62 or older to receive payments from the lender using their home equity, with repayment deferred until the borrower moves out, sells, or dies. The loan grows over time with interest.
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