Finance
What is a 'reverse mortgage' and who might use one in Illinois?
AA mortgage where the buyer pays the seller directly rather than through a bank
BA loan for homeowners aged 62+ that converts home equity into cash without monthly payments; the loan is repaid when the owner sells or dies✓ Correct
CA mortgage that decreases the purchase price over time
DA government program allowing seniors to rent their homes back from the bank
Explanation
A reverse mortgage (most commonly HECM—Home Equity Conversion Mortgage) allows homeowners aged 62 and older to convert home equity into cash without making monthly mortgage payments. The loan accrues interest and is repaid when the homeowner sells the property, moves out permanently, or dies. The borrower must continue paying taxes, insurance, and maintenance. It is a tool for income-limited seniors in Illinois.
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