Definition: A reverse mortgage allows an eligible homeowner to borrow against home equity with repayment generally deferred until a specified event, such as sale, permanent departure, or death, subject to the loan terms.
Example
An eligible owner receives funds while remaining in the home; interest and charges can increase the balance over time.
Keep the distinction clear
The lender does not automatically own the home. The borrower must meet continuing obligations such as property taxes, insurance, maintenance, and occupancy; failure can lead to foreclosure.
Related terms
Equity · Borrower · Foreclosure
Keep studying
Mortgages: Borrower, Lender, Ownership, and Key Clauses
References: CFPB: ownership and obligations with a reverse mortgage
Pronunciation (US): rih-VERS MOR-gij (capitals show stress)
Pronunciation reference: Merriam-Webster
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