Finance
What is a 'reverse mortgage' in Delaware real estate?
AA mortgage where the lender makes payments to the borrower, drawing down the home's equity over time✓ Correct
BA mortgage where payments reverse direction after 10 years
CA mortgage where the borrower pays interest first, then principal
DA loan made by the seller to the buyer instead of a bank
Explanation
A reverse mortgage (most commonly an FHA Home Equity Conversion Mortgage — HECM) allows homeowners age 62+ to convert home equity into cash, with the lender making payments to the borrower. The loan is repaid when the borrower moves out, sells, or dies.
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