BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A reverse mortgage is a loan for seniors age 62 and older.
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These loans are secured over a residential property.
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These loans typically do not require monthly mortgage payments.
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All of the Above
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Detailed explanation-1: -Reverse Mortgage Loan (RML) enables a Senior Citizen i.e. above the age of 60 years to avail of periodical payments from a lender against the mortgage of his/her house while remaining the owner and occupying the house.
Detailed explanation-2: -Reverse mortgage loans are a unique type of home loan designed for senior citizens and require no monthly mortgage payments. The loan payments need not be made until the borrower passes away, sells or moves out of the house. There are no restrictions on the end use of the funds obtained via a reverse mortgage loan.
Detailed explanation-3: -Reverse mortgage is a loan which provides additional source of income for senior citizens who have a self-acquired or self-occupied home in India. The borrower is paid payments by the lender against the mortgage.
Detailed explanation-4: -The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower. The borrower is not required to pay back the loan until the home is sold or otherwise vacated.