Finance
A West Virginia homeowner who is 62 or older wants to convert their home equity to cash without making monthly mortgage payments. The appropriate loan product is:
AHome equity line of credit
BFHA reverse mortgage (HECM)✓ Correct
CCash-out refinance
DPersonal unsecured loan
Explanation
A Home Equity Conversion Mortgage (HECM), also called a reverse mortgage, is a federally insured loan available to homeowners age 62 and older. It allows conversion of home equity to cash without monthly payments — the loan is repaid when the home is sold or the borrower moves out.
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