Q. Consider the following statements: Reverse Mortgage Loans are designed only to serve the Senior Citizens The repayment of the Loan and accumulated interest is generally done by selling the property mortgaged The home equity in reverse mortgage loans decreases over a period of time. Which among the above statements is/ are correct?
Answer: All are correct
Notes:

1. True - Reverse mortgage loans are a type of home loan designed for seniors aged 62 or older to convert part of their home equity into cash while still living in the home.
2. True - Unlike regular mortgages, reverse mortgages are not repaid until the homeowner sells the home, moves out, or dies. At that point, the loan balance plus accumulated interest is repaid by selling the home.
3. True - Since reverse mortgage loans allow homeowners to withdraw equity over time while not making loan payments, the remaining home equity decreases as more equity is withdrawn and interest accrues on the loan.

Therefore, all three statements are correct. The answer is D.

1

Above question is part of 10000+ MCQs for UPSC (Prelims) Paper-1 course in GKToday Android app.