Reverse Mortgage Quiz

1. You must be at least 62 years old to apply for a reverse mortgage.(Required)

True

False

2. The bank takes ownership of your home when you take out a reverse mortgage.(Required)

True

False

3. The cash flow derived from a reverse mortgage is not taxable under IRS rules.(Required)

True

False

4. Medicaid does not factor in the cash flow from a reverse mortgage in an income analysis.(Required)

True

False

5. When all borrowers on a reverse mortgage leave the home for 12 consecutive months, the loan becomes due and payable.(Required)

True

False

6. When a reverse mortgage is paid off through the sale of the property, all equity goes to the lender.(Required)

True

False

7. The 3 possible trigger points that can require the payoff of a reverse mortgage are: 1-the borrower(s) no longer reside in the property as their primary residence for 12 consecutive months; 2-the borrower(s) sell or transfer the property; 3-the borrower(s) fail to pay taxes, insurance or upkeep on the property.(Required)

True

False

8. A lender can take a “deed in lieu of” instead of the home being sold to pay off the reverse mortgage.(Required)

True

False

9. A reverse mortgage can be taken out as a home equity line of credit or a fixed rate.(Required)

True

False

10. A borrower can take out a monthly distribution from a reverse mortgage either for a fixed term or for life.(Required)

True

False

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Kinetic Wealth by Ken Pitts

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