When a Lender Uses Your House as Collateral to Buy

question 47

Multiple Choice

When a lender uses your house as collateral to buy an annuity for you from a life insurance company, it is called:

• A)an obverse annuity mortgage.
• B)mortgage life insurance.
• C)a reverse mortgage annuity.
• D)a fixed annuity with level premium.
• E)whole life insurance.

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Definitions:

Boredom

A state of feeling disinterested and unengaged with one’s current activity or surroundings.

Fear

An emotional response to perceived threats or danger, often resulting in a desire to avoid or confront the source of fear.

Parasympathetic

Pertaining to the part of the autonomic nervous system that conserves energy by slowing down the heart rate and increasing digestive and glandular activity.

Sympathetic

Relating to, or denoting the part of the autonomic nervous system that accelerates the heart rate, constricts blood vessels, and raises blood pressure or showing feelings of pity and sorrow for someone else's misfortune.