Finance
A reverse mortgage in Indiana allows homeowners who are 62 or older to:
ATransfer their mortgage to a younger buyer
BConvert home equity to cash without making monthly mortgage payments, with the loan balance repaid when the home is sold or the owner dies✓ Correct
CRefinance their home at a lower rate without income verification
DBuy a second home using their first home as collateral
Explanation
A reverse mortgage (HECM) allows seniors 62+ to access home equity as a lump sum, monthly payments, or line of credit. No payments are required while the borrower lives in the home; the loan is repaid when the home is sold or the borrower dies.
Related Indiana Finance Questions
- Predatory lending practices that Indiana regulators watch for include all of the following EXCEPT:
- Indiana's Mortgage Foreclosure Mediation program encourages parties to:
- The loan-to-value (LTV) ratio is calculated as:
- A conforming loan is one that:
- A wraparound mortgage is BEST described as:
- A home equity line of credit (HELOC) is best described as:
- Amortization refers to:
- Private Mortgage Insurance (PMI) is typically required when the down payment is less than:
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