In which type of mortgage is the loan repaid when the borrower dies or the property is sold?

A) Variable-rate mortgage
B) Conventional mortgage
C) Balloon-payment mortgage
D) Reverse mortgage

Reverse Mortgage

A type of loan that allows homeowners, over the age of 62, to convert some of the equity in their home into cash while retaining ownership of their home.

Loan Repaid

The process of paying back borrowed money to the lender, typically including both the principal amount and any accrued interest.

Borrower Dies

The situation where an individual who has taken out a loan passes away, potentially affecting the repayment obligations and terms of the loan.