A Reverse Mortgage

question 88

Multiple Choice

A reverse mortgage

• A) Is the same thing as a second mortgage.
• B) Offers a home buyer a home loan with a 30-year payment period.
• 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) Two of these are correct.
• E) All of these are correct.

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Definitions:

Market

A place or mechanism where buyers and sellers can trade goods, services, securities, or other items of value.

Securities

Financial instruments that represent ownership positions in publicly-traded corporations (stock), creditor relationships with governmental bodies or corporations (bonds), or rights to ownership as represented by an option.

Returns on Stock Investments

The gain or loss made on stock investments, typically expressed as a percentage of the investment's initial cost.

Inflationary Pressures

Situations or factors that lead to an overall increase in prices, reducing purchasing power in an economy.