Finance
In a reverse mortgage, the borrower:
AMakes monthly payments to build equity
BReceives loan proceeds and repays only when the home is sold or they leave✓ Correct
CMust have less than 50% equity
DMust be under 62 years old
Explanation
In a reverse mortgage (HECM), a homeowner 62 or older receives loan proceeds against their home equity and repayment is deferred until they sell, move out, or pass away.
Related Kentucky Finance Questions
- The Kentucky Housing Corporation (KHC) provides:
- A Kentucky buyer is purchasing a home with a VA loan. VA appraisers establish a Certificate of Reasonable Value (CRV) primarily to:
- A mortgage assumption in Kentucky occurs when:
- In Kentucky, a hard money loan is typically characterized by:
- A Kentucky homebuyer's loan has a 'due-on-sale' clause. This means:
- A Kentucky buyer obtains a 30-year, $220,000 mortgage at 5.75% with a monthly payment of $1,284. After 5 years, the remaining balance is approximately $207,000. How much equity has been built through principal paydown?
- A Kentucky construction loan converts to a permanent mortgage upon:
- A Kentucky interest-only mortgage requires the borrower to:
Practice More Kentucky Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kentucky Quiz →