Definition of reverse mortgage in US English:

reverse mortgage

noun

US
  • A financial agreement in which a homeowner relinquishes equity in their home in exchange for regular payments, typically to supplement retirement income.

    ‘unlike traditional mortgages, which decline as you pay down the loan, reverse mortgages rise over time as interest on the loan accrues’
    • ‘If you're contemplating selling your house next year, a reverse mortgage may not be a good idea.’
    • ‘You can sell it in a reverse mortgage to the bank and live on an annuity in return.’
    • ‘To qualify for a reverse mortgage in the US, you must be at least 62 years old and own a significant portion of the home.’
    • ‘Sure, you've got a lot of equity in the house, so a reverse mortgage is a nice way to tap into it, but wouldn't be nicer to know you could just leave the property to heirs while you tap into your stocks and bonds?’
    • ‘If you're interested in getting a reverse mortgage, make sure you deal with a reputable lender.’
    • ‘Taking out a reverse mortgage to deposit the money into a bank is not advised since there is only a slim chance that the interest gained will match let alone exceed the interest accumulating on your loan.’
    • ‘Before taking out a reverse mortgage, you should research the topic thoroughly, compare costs from a variety of lenders, and read all disclosure documents.’
    • ‘You also need to remember that, with a reverse mortgage, your debt increases over time due to the interest on the loan.’
    • ‘A growing number of seniors have been taking out reverse mortgages, borrowing from equity in their homes in lieu of monthly payments on a traditional mortgage, to purchase annuity products.’
    • ‘Payments from a reverse mortgage aren't taxable.’