A reverse mortgage provides older home owners with tax-free income in the form of a loan that is repaid when the home is sold or the home owner dies. It is not the same thing as a second mortgage, and while a line of credit program may be available, it is not the primary purpose of a reverse mortgage.

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A Reverse Mortgage

Question 77

Multiple Choice

A reverse mortgage

A) Is the same thing as a second mortgage.
B) Allows a homeowner access to a line of credit program
C) Provides older home owners with tax-free income in the form of a loan that is repaid when the home is sold or the home owner dies.
D) All of these are correct.
E) None of these are correct.

Correct Answer: