Finance
A Texas reverse mortgage allows homeowners aged 62 or older to:
ASell their home to the lender at appraised value
BConvert home equity into loan proceeds without monthly mortgage payments, with the loan due when the borrower moves out or dies✓ Correct
CRefinance at a lower rate without income verification
DTransfer their mortgage to a younger family member
Explanation
A reverse mortgage (Home Equity Conversion Mortgage or HECM) allows eligible seniors to borrow against their home equity with no required monthly payments. The loan becomes due when the last borrower moves, sells, or dies.
Related Texas Finance Questions
- Under the Texas Constitution, a home equity loan or HELOC cannot be made to a homestead owner more than:
- A Texas borrower receives a Loan Estimate (LE) within 3 business days of applying for a mortgage. The LE must include:
- Under the SAFE Act, mortgage loan originators (MLOs) in Texas must be licensed through:
- A Texas mortgage with a due-on-sale clause means:
- The primary purpose of PMI (Private Mortgage Insurance) in Texas is to:
- In Texas, a home equity line of credit (HELOC) secured by the homestead can be used for:
- A Texas homebuyer signs a rate lock agreement for 30 days. If the loan doesn't close within 30 days:
- A Texas lender offers a 5/1 ARM with a 2/2/5 cap structure. This means the rate can increase by how much at the first adjustment?
Practice More Texas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Texas Quiz →