Finance
A Mississippi homeowner who is 62 years old and has significant equity in their paid-off home is exploring a reverse mortgage (HECM). They should know that a HECM loan becomes due when:
AThe homeowner reaches age 80
BThe homeowner permanently vacates the property, sells, or dies — all events triggering loan repayment✓ Correct
CAfter exactly 20 years regardless of occupancy
DWhen the homeowner's income rises above a threshold
Explanation
A HECM (Home Equity Conversion Mortgage) reverse mortgage becomes due and payable when the last surviving borrower (1) permanently moves out or lives away for more than 12 consecutive months, (2) sells the home, or (3) dies. As long as at least one borrower occupies the home, no repayment is required.
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