Author Question: Jack and Jill Freeman are both retired. Jack is 64 and Jill is 66 . Their home has been paid for for ... (Read 38 times)

littleanan · **on:** Aug 3, 2018

Jack and Jill Freeman are both retired. Jack is 64 and Jill is 66 . Their home has been paid for 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. Jack and Jill may be able to ease their burden through:

A. A seller's purchase money mortgage
B. A reverse mortgage
C. An assumed mortgage
D. A fixed rate mortgage

Question 2

Phil and Roweena are first time home buyers struggling to make ends meet. They enter into a mortgage with an interest rate of 4.25 for a term of 30 years. The mortgage is self amortizing, but the monthly payments for the first 3 years of the mortgage are lower than the required self amortizing payments. At the end of 3 years, though, the mortgage payments will increase so that they actually exceed the required self amortizing payments to make up for the shortfall during the first 3 years of the mortgage. Roweena and Phil have most likely entered into a:

A. Graduated payment mortgage
B. Fixed rate mortgage
C. Balloon mortgage
D. Adjustable rate mortgage