Finance
In New Mexico, which of the following is TRUE about a 'reverse annuity mortgage' (reverse mortgage)?
AMonthly payments are required from the borrower
BLoan balances increase over time as interest accrues and loan advances are paid out✓ Correct
CThe property must be commercial
DIt is available only to veterans
Explanation
In a reverse mortgage, the lender makes payments to the borrower (or a line of credit accrues). As payments are made and interest accrues, the loan balance increases over time, paid off when the borrower vacates or dies.
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