TRUE OR FALSE: Reverse Mortgage Trivia!
A reverse mortgage is a specific type of home loan that turns equity into cash (without having to sell your home). Also known as second mortgages, these loans allow you to borrow against the part of your home that you officially own (in other words, the principle that you have already paid on your home loan). Reverse mortgages can be incredibly helpful for people trying to fund a child's college education or a big remodeling project, but it is important to fully educate yourself on every process first. Arrowhead Title, Inc. is here to help you test your knowledge of second mortgages with this true-or-false quiz. 1. I must have good credit to qualify for a reverse mortgage. FALSE. The lender will run a credit report for tax and federal liens. All recorded liens must be paid off and property taxes must be paid and be current at the time of closing so the lender can take first position. 2. If I don't want to pay my taxes and insurance, the lender can set aside a portion o...