Michelle Woods,a 64 year old retired professor,has applied for a home equity loan from a bank in her neighborhood.The bank structured a loan against her property in a manner that she receives $5,000 every month.This is an example of:

Question

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This is an example of a reverse mortgage loan, which allows homeowners who are 62 years or older to borrow money against the equity in their homes, and receive funds in either a lump sum, monthly payments, or a line of credit. In this case, Michelle Woods is receiving $5,000 every month, which is a form of monthly payments.

Michelle Woods,a 64 Year Old Retired Professor,has Applied for a Home