Finance
A reverse mortgage allows a homeowner to:
AConvert their home equity to cash income without making monthly mortgage payments✓ Correct
BPurchase a home with no money down
CRefinance an underwater mortgage
DTransfer their mortgage to a family member
Explanation
A reverse mortgage allows homeowners (typically 62 or older) to convert their home equity into cash or a line of credit without making monthly mortgage payments. The loan balance grows over time and is repaid when the homeowner sells, moves, or dies.
Related Tennessee Finance Questions
- In Tennessee, a 'prepayment penalty' in a mortgage is:
- In Tennessee, a 'balloon mortgage' is characterized by:
- A Tennessee borrower's 'net worth' is calculated as:
- In Tennessee, a 'purchase money mortgage' is one that:
- A Tennessee buyer uses an FHA loan with a 3.5% down payment on a $220,000 home. What is the down payment amount?
- The 'principal balance' of a mortgage loan is:
- Which type of loan is most common for Tennessee residential purchases and is not guaranteed or insured by the federal government?
- An FHA 203(k) rehabilitation loan allows a buyer to:
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →