Finance

A Massachusetts reverse mortgage allows homeowners age 62 or older to:

APurchase a home with no down payment
BConvert home equity into cash without making monthly mortgage payments✓ Correct
CTransfer their mortgage to a family member
DRefinance at a lower interest rate automatically

Explanation

A reverse mortgage (Home Equity Conversion Mortgage or HECM) allows homeowners age 62 or older to borrow against their home equity and receive cash without making monthly payments. The loan is repaid when the borrower sells, moves, or dies. Massachusetts counseling is required before obtaining a reverse mortgage.

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