Finance
In New Mexico, a 'reverse mortgage' (Home Equity Conversion Mortgage) allows homeowners who are:
AFirst-time buyers
BAge 62 or older to convert home equity into tax-free cash without monthly mortgage payments, with the loan repaid when they sell, move out, or die✓ Correct
CInvestors in commercial property
DAny age, as long as they have 50% equity
Explanation
A reverse mortgage (HECM) is available to homeowners age 62+ and allows them to access home equity as cash or credit line, with no monthly payments required. The loan is repaid from the sale of the home when the borrower moves, sells, or dies.
Related New Mexico Finance Questions
- In New Mexico, the standard mortgage instrument used in most residential transactions is a:
- Which government agency insures FHA loans?
- What is the minimum down payment required for an FHA loan for a borrower with a credit score of 580 or higher?
- What is a 'point' in the context of a New Mexico mortgage loan?
- In New Mexico, the 'Home Owners' Loan Act' provisions affecting federal savings associations (thrifts) relate primarily to:
- A New Mexico buyer obtains a loan where the interest rate can change periodically based on a financial index. This is called a(n):
- A New Mexico buyer uses a 203(k) rehabilitation loan. This is a program offered by:
- What does 'loan-to-value ratio' (LTV) measure?
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →