Finance
In New York, a 'reverse mortgage' (HECM — Home Equity Conversion Mortgage) allows eligible homeowners to:
APurchase a new home with no down payment
BConvert home equity into cash payments or a line of credit without requiring monthly mortgage payments, with repayment due when the borrower moves, sells, or dies✓ Correct
CTransfer their mortgage obligation to a new borrower
DObtain a second mortgage at a reduced rate
Explanation
A reverse mortgage (FHA-insured HECM) allows homeowners aged 62 or older to access their home equity as cash, a monthly payment, or a line of credit, without having to make monthly mortgage payments. The loan becomes due when the borrower permanently leaves the home, sells, or dies.
People Also Study
Related New York Questions
- A New York homeowner with a $600,000 home and a $200,000 first mortgage can borrow against the equity through a home equity line of credit (HELOC). The maximum loan amount a lender would consider (at 80% CLTV) is:Finance
- In New York, a 'home equity line of credit' (HELOC) is secured by:Finance
- In New York, a lender who charges a borrower an interest rate above a certain threshold on a home loan may be issuing a 'high-cost mortgage' subject to additional protections under:Finance
- A 30-year fixed-rate mortgage in New York has a principal of $500,000 at 7% annual interest. Using a factor of $6.65 per $1,000 borrowed (approximate monthly payment factor for 7%, 30-year loan), what is the approximate monthly PITI before taxes and insurance?Real Estate Math
- In New York, a 'HELOC' (home equity line of credit) is typically a:Finance
- A 30-year fully amortized mortgage for $360,000 at 7% annual interest has a monthly payment factor of $6.65 per $1,000 of loan amount. What is the monthly payment (P&I)?Real Estate Math
- In New York, when a property owner dies without a will and without heirs, their real property passes to the state under the doctrine of:Property Ownership
- In New York, a seller's agent who assists the buyer in filling out their mortgage application without disclosure of their dual role is potentially:Agency
Key Terms to Know
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.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Math Concepts
Study This Topic
Practice More New York Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New York Quiz →