Finance
What is a 'reverse mortgage' and who is eligible in Rhode Island?
AA mortgage where the borrower pays principal first and interest later
BA loan available to homeowners 62 or older that allows them to convert home equity into cash without selling the home✓ Correct
CA second mortgage used to finance investment properties
DA government program only available to military veterans
Explanation
A reverse mortgage (most commonly the FHA Home Equity Conversion Mortgage, or HECM) allows homeowners aged 62 or older to access their home equity as income. No repayment is required while the borrower lives in the home; the loan is repaid when the home is sold or the borrower moves out or dies.
Related Rhode Island Finance Questions
- What is 'points and fees' in the context of the qualified mortgage (QM) rule and how does it affect Rhode Island lenders?
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- What is 'mortgage insurance premium' (MIP) for FHA loans and when can it be removed?
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- What is the Rhode Island Realty Transfer Tax rate?
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