Many older,retired households are considered "house poor." Which of the following forms of loans has been designed to help mitigate this problem by offering additional monthly income to these homeowners in exchange for a portion of their housing equity?

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A reverse mortgage is a loan designed for older homeowners who are house rich but cash poor. This loan allows them to convert a portion of their home equity into additional monthly income, without needing to sell the property or take on additional debt. Unlike traditional mortgages or home equity loans, reverse mortgages do not require any ongoing payments, and the loan balance is typically due only when the homeowner permanently moves out of the property or passes away. This can be a valuable source of additional income for retired households who are struggling to make ends meet, without requiring them to give up their homes or take on additional debt.

Many Older,retired Households Are Considered "House Poor