Reverse mortgages must be repaid under which condition?

Reverse mortgages are unique financial products that allow homeowners, typically those aged 62 and older, to convert part of their home equity into cash while still living in the home. One important aspect of reverse mortgages is that they do not have to be repaid until certain conditions are met.

The correct choice encompasses all scenarios where a reverse mortgage must be repaid: when the borrower moves out of the home, when the borrower passes away, and upon selling the home. Specifically, repayment is triggered when the borrower no longer occupies the home as their principal residence. This may occur if the borrower moves to a long-term care facility, sells the home, or passes away. Upon such events, the loan amount becomes due, which is typically paid through the sale of the home or by other means established by the borrower's heirs or estate.

Understanding the repayment conditions is essential for borrowers to fully grasp how reverse mortgages work and to anticipate any future financial responsibilities—like potentially needing to sell the home for repayment—after significant life events. This knowledge empowers borrowers to make informed decisions about their financial futures.