Finance
In Minnesota, a reverse mortgage is available to homeowners who are at least:
A55 years old
B60 years old
C62 years old✓ Correct
D65 years old
Explanation
Home Equity Conversion Mortgages (HECMs), the most common type of reverse mortgage, are available to homeowners aged 62 or older. The loan allows senior homeowners to convert home equity into cash without monthly mortgage payments.
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Key Terms to Know
Amortization
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Math Concepts
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