Question

The type of mortgage that can provide the borrower with a monthly check instead of the borrower paying a monthly payments is known as a ______________.

A. Reverse mortgage.
B. Home equity loan.
C. Adjustable-rate mortgage (ARM).
D. Fixed-rate mortgage.

Answer 1

A reverse mortgage is the type of mortgage that can provide the borrower with a monthly check instead of the borrower paying monthly payments.

Step-by-step explanation:

The type of mortgage that can provide the borrower with a monthly check instead of the borrower paying monthly payments is known as a Reverse mortgage. With a reverse mortgage, the borrower receives payments from the lender based on the equity they have built up in their home. This is different from a traditional mortgage where the borrower makes monthly payments to the lender.