Which of the Following Is True About Reverse Annuity Mortgages

question 22

Multiple Choice

Which of the following is true about reverse annuity mortgages (RAMs) ?

• A) RAMs allow homeowners to borrow against the equity on their homes at low rates.
• B) Typically obtained by older people whose home loans have been paid off, but can use income of the real estate investment they own.
• C) Typical term is no more than 20 years and could be for borrower's lifetime as an annuity.
• D) Homeowners' equity declines by amount borrowed.
• E) All of the above are true.

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