Author Question: The Partlows are both retired. Pete is 67 and Pat is 66 . Their home has been paid off for a number ... (Read 32 times)

lunatika · **on:** Aug 3, 2018

The Partlows are both retired. Pete is 67 and Pat is 66 . Their home has been paid off for a number of years. Although both receive a small pension and Social Security payments, they have insufficient savings to maintain a comfortable retirement. They do not, however, want to sell their home. They have heard of an option known as the reverse mortgage and ask you to explain this option to them. What would you tell them? Explain fully.

What will be an ideal response?

Question 2

A written, personal obligation to repay a sum of money owed:

A. Mortgage
B. Promissory note
C. Will
D. Deed

lorealeza77 · **Reply #1 on:** Aug 3, 2018

Answer to Question 1

A reverse mortgage is an option where a lender pays the homeowner monthly payments. An advantage is that the loan does not have to be repaid until the property is sold, the homeowner dies or no longer uses the home as a primary residence. The primary advantage is to supplement income to retired or elderly homeowners who have significant equity in their homes but no other assets or sufficient retirement savings.

Answer to Question 2

B