At age 70, Fiona lives alone, owns a house valued at $350,000, and has paid off the mortgage completely. Fiona has no other assets to live on. She can choose a reverse mortgage that gives her payments of $32,000 a year for 10 years or one that pays her $20,000 a year for as long as she lives in the house. Fiona opts for the $32,000-a-year reverse mortgage. Did Fiona do the right thing, considering that women of her age live 14 more years on average?

Question

anonymous · Answer

Select the best answer from the choices provided.
Yes, because she can live rent-free for 10 years and receives a larger income for those years.
Yes, because she gets value out of the house in a form she can use.
No, because she may be unable to live in the house that long or if she lives longer, she will be broke.
No, because reverse mortgages only make sense for people under 50 years old.

anonymous · Answer

@JoannaBlackwelder  Im going with B what you think?

anonymous · Answer

@its either A or B

anonymous · Answer

Many seniors sell their houses, move to smaller places, and live off the profits. Home values can also be converted into regular payments in a reverse mortgage

joannablackwelder · Answer

I think you are right. A or B. Probably B.

anonymous · Answer

Yes is B im pretty sure mate

anonymous · Answer

I believe that the answer is C. She is choosing a fixed-term reverse mortgage. Choosing a fixed term mortgage puts you at risk for becoming broke if she lives past the term of 10 years. Hence to why they mention WOMEN HER AGE LIVE 14 MORE YEARS ON AVERAGE