Question

1. The borrower of a Reverse Mortgage must be at least ____ years of age.
   1. 55
   2. 60
   3. 62
   4. 65

2. This is a type of mortgage where the principal is not included in any of the payments
   1. Constant Payment Mortgage
   2. Adjustable Rate Mortgage
   3. Interest Only Mortgage
   4. None of the above

3. This is a type of mortgage where the interest paid each period decreases, but the principal paid remains the same each period of the mortgage.
   1. Constant Payment Mortgage
   2. Constant Amortization Mortgage
   3. Adjustable Rate Mortgage
   4. None of the above

4. This is a type of mortgage where the balance at the end of the full term is zero.
   1. Non-Amortizing Mortgage
   2. Partially Amortizing Mortgage
   3. Fully Amortizing Mortgage
   4. None of the above

Answer 1

1. BORROWER MUST BE 62 YEARS OLD

2. INTEREST ONLY MORTGAGE. WHERE PRINCIPAL IS NOT INCLUDED IN PAYMENTS FOR A CERTAIN PERIOD OF TIME.

3. CONSTANT AMORTIZATION MORTGAGE GRAUALLY AND SYSTEMATICALLY REDUCES THE PRINCIPLE BY EQUAL REGULAR PAYMENTS

4. FULLY AMORTIZING MORTGAGE IS WHERE THE BALANCE AT THE END OF THE TERM WILL BE ZERO.