Finance
What is a reverse mortgage and who typically uses it?
AA loan where the lender pays the borrower monthly, typically used by homeowners 62 or older✓ Correct
BA mortgage where the borrower pays extra principal to pay off the loan faster
CA loan where the interest rate decreases over time as the borrower builds equity
DA mortgage used when buying a home in a declining market
Explanation
A reverse mortgage (HECM) allows homeowners 62 or older to convert home equity into income without monthly mortgage payments. The loan is repaid when the homeowner sells, moves out, or passes away.
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