Finance
A reverse mortgage allows homeowners to:
APurchase a home with no down payment
BConvert home equity into cash while remaining in the home✓ Correct
CRefinance at a lower rate without closing costs
DTransfer the mortgage to a new buyer
Explanation
A reverse mortgage (typically FHA's Home Equity Conversion Mortgage — HECM) allows homeowners aged 62 and older to convert their home equity into cash or a line of credit while continuing to live in the home.
Related Georgia Finance Questions
- The loan-to-value ratio (LTV) is calculated as:
- Which of the following is a characteristic of an FHA loan that makes it more accessible to first-time buyers?
- A buyer assumes a seller's existing mortgage in Georgia. This means the buyer:
- A 'straight-term' or 'interest-only' mortgage requires the borrower to:
- A USDA Rural Development loan is best suited for buyers who:
- A 'teaser rate' in an ARM loan is:
- Under Regulation Z (TILA), a right of rescission gives borrowers in a refinance transaction how many business days to cancel?
- A 'conforming loan limit' is the maximum loan amount that can be:
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →