Finance
In New Mexico, which of the following is TRUE about a home equity conversion mortgage (HECM/reverse mortgage)?
AMonthly payments are required from the borrower
BThe loan becomes due when the borrower no longer occupies the home as their primary residence✓ Correct
CIt is available to homeowners of any age
DIt requires no equity in the home
Explanation
A reverse mortgage (HECM) allows eligible homeowners 62+ to tap their home equity without monthly payments. The loan becomes due when the borrower dies, sells, or permanently moves from the primary residence.
Related New Mexico Finance Questions
- In New Mexico, 'seller-paid closing costs' are sometimes referred to as:
- In New Mexico, a 'mortgage banker' differs from a 'mortgage broker' in that a mortgage banker:
- In New Mexico, a 'blanket mortgage' is used most often by:
- In New Mexico, which of the following is a primary function of the FHA (Federal Housing Administration)?
- In New Mexico, which of the following best describes 'interest rate risk' in mortgage lending?
- In New Mexico, the term 'private money lender' typically refers to:
- In New Mexico, which of the following is a characteristic of a 'fully amortized loan'?
- In New Mexico, a 'swing loan' or 'gap loan' is designed to:
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 →