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Musya8 [376]
4 years ago
10

Maury and Bev have saved all their lives and they have been able to pay off their mortgage on their home. Bev is getting elderly

and frail and Maury needs to put her into a nursing home where they can give her round-the-clock care. Maury intends to finance this arrangement by getting a loan where the lender makes payments to the homeowner each month, based on accumulated equity. What type of loan does Maury want to get?
Business
1 answer:
Alina [70]4 years ago
7 0

Answer:

A reverse mortgage

Explanation:

A reverse mortgage is a loan type available to senior citizens above the age of 62. This loan type allows the elderly to convert part of their home equity into cash without selling the house. Once a bank value home, it offers the loan against the home value. The loan amount is dispersed as a lump sum or fixed monthly payments. The elderly do not have to pay back the loan. The bank recover its money upon death or relocation.

Maury should get a reverse mortgage loan. He won't have to repay the loan but will be getting monthly payments to support Bev's care.

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