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Financing Practice Question

Which statement about reverse mortgages is TRUE?
A
Monthly mortgage payments are required
B
The loan becomes due when the borrower sells, moves out, or passes away
C
The lender takes ownership of the home
D
Interest is tax-deductible annually
Explanation

With a reverse mortgage, no monthly payments are required. The loan becomes due when the borrower sells the home, moves out for more than 12 months, or passes away. The borrower retains ownership and must maintain property taxes, insurance, and maintenance.

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