Finance
A reverse mortgage allows homeowners to:
APurchase a home without a down payment
BConvert home equity into cash without selling the home or making monthly payments✓ Correct
CRefinance a mortgage at a lower interest rate
DTransfer a mortgage from one property to another
Explanation
A reverse mortgage allows homeowners (typically seniors 62 and older) to convert their home equity into cash payments or a line of credit without selling the home or making monthly mortgage payments. The loan balance grows over time and is repaid when the homeowner sells, moves out, or dies.
Related Illinois Finance Questions
- What is 'amortization' in the context of an Illinois mortgage loan?
- The Federal Reserve's primary tool for influencing mortgage interest rates is:
- Under the Dodd-Frank Act, a Qualified Mortgage (QM) generally prohibits a borrower's debt-to-income ratio from exceeding:
- A USDA Rural Development loan is designed to assist:
- What is the primary purpose of Private Mortgage Insurance (PMI) in Illinois real estate transactions?
- Which of the following describes 'negative amortization'?
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in lending based on all of the following EXCEPT:
- A point paid on a mortgage loan equals:
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →