reverse mortgage

A financial tool which provides seniors with funds from the equity in their homes. Generally, no repayments are made on a reverse mortgage until the borrower moves or the property is sold. The final repayment obligation is designed to not exceed the proceeds from the sale of the home.

A Reverse Mortgage typically allows the lender to pay the borrower a sum of money each month as opposed to a lump sum (cash-out). After the completion of the term, the title to the property is usually conveyed to the mortgagee.

Would you like to add another definition for "reverse mortgage" to the Real Estate Dictionary?

Terms that closely resemble "reverse_mortgage":