Finance
Which of the following is a characteristic of a reverse mortgage?
AMonthly payments must be made by the homeowner to the lender
BAvailable to homeowners age 62 or older who receive loan proceeds without making monthly payments✓ Correct
CThe loan must be repaid within 10 years
DAvailable only for investment properties
Explanation
A reverse mortgage (HECM — Home Equity Conversion Mortgage) allows homeowners 62 or older to convert home equity into cash without monthly mortgage payments. The loan is repaid when the borrower moves out, sells, or dies. FHA insures HECMs.
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