Reverse Mortgage Information

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Reverse Mortgage Quiz - Have fun with this new quiz!

 

QuizReverse Mortgage Quiz - Have fun with this new quiz!

1) What is the minimum age allowed for a reverse mortgage? borrower?
a) 55
b) 60
c) 62
d) 65

2) What does HECM stand for?
a) Home Equity Conversion Mortgage
b) Housing for Elder Community Mortgage
c) Housing Equality Cooperative Mortgage
d) Help for Elders Community Mortgage

3) True/False - Reverse Mortgage proceeds are considered taxable income.


4) Loan to Value ratios on Reverse Mortgages are based upon these three factors:
a) Home Value,  FHA Lending Limit, Age of oldest borrower.
b) Home Value or FHA Lending Limit (whichever is least), current expected interest rate, and the age of youngest borrower.
c) Home Value or FHA Lending Limit (whichever is less), Average age of borrowers, current expected interest rate.
d) Home Value, current expected interest rate, Age of Youngest borrower.

5) HECM Reverse Mortgage Loans are insured by:
a) They are not insured.
b) VA
c) Social Security
d) FHA

6) True/False - You cannot get a reverse mortgage on investment property.


7) True/False - Reverse Mortgages may be used as purchase money loans on a primary residence.

8) True/False - Proceeds from a reverse mortgage may be used to buy a vacation home.

9) Once you have a reverse mortgage and you are taking monthly payments -  if you wish to change the method of payment you must:
a) Refinance the loan
b) Request a Change and Recalculation and pay .01% of the current loan balance.
c) Request a Change and Recalculation and pay $20
d) You cannot change the distribution method of a reverse once it’s in place.

10) Reverse Mortgage Counseling is
a) Optional, but recommended and  provided by HUD Approved HECM counselors
b)Mandatory, provided by HUD Approved HECM counselors and must be completed prior to closing the reverse mortgage loan.
c) Mandatory and provided free of charge by the lender or originator.
d) Mandatory,  provided by HUD Approved HECM counselors, and must be completed prior applying for a reverse mortgage.

Answer Key























Answers: 1=C, 2=A, 3=False, 4=B, 5=D, 6=True, 7=True, 8=True, 9=C, 10=D

 

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By Deborah Nance

NMLS#202003

Your Local Southern California Reverse Mortgage Professional

How Much Do You Qualify For?

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Equal Housing Lender

iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin. 

Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.

Comment balloon 1 commentDeborah Nance • February 08 2011 11:47AM

Comments

Thanks for the great information - simple, concise and helpful

Posted by Lori Bowers, The Lori Bowers Group about 7 years ago

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