Finance
A Pennsylvania homeowner uses a reverse mortgage. Which statement is most accurate?
AThe homeowner must make monthly mortgage payments to the lender
BThe loan becomes due when the borrower dies, sells, or no longer lives in the home as a primary residence✓ Correct
CReverse mortgages are available to all Pennsylvania homeowners regardless of age
DThe lender takes title immediately upon the reverse mortgage being signed
Explanation
A reverse mortgage (HECM) converts home equity into loan proceeds with no required monthly payments. The loan becomes due and payable when the borrower dies, sells the home, moves out, or fails to meet obligations (insurance, taxes, maintenance). HECM borrowers must be 62 or older.
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