Definition
A loan allowing homeowners aged 62 and older to convert equity into cash with repayment deferred until the home is sold or vacated.
Example
The HECM required continued payment of taxes, insurance, and maintenance to avoid default.
Related terms
- Acceleration Clause
- Accrued Interest
- Adjustable Rate Cap
- Adjustable-Rate Mortgage
- Amortization
- Annual Percentage Rate
Frequently asked questions
What does Reverse Mortgage mean in real estate?
A loan allowing homeowners aged 62 and older to convert equity into cash with repayment deferred until the home is sold or vacated.
How is Reverse Mortgage used in practice?
The HECM required continued payment of taxes, insurance, and maintenance to avoid default.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.