reverse mortgage

noun

: a mortgage that allows an elderly person to convert home equity into available funds through a line of credit, cash advance, or periodic disbursements to be repaid with interest usually when the borrower dies, moves, or sells the home

Examples of reverse mortgage in a Sentence

Recent Examples on the Web The counselor will look at your goals, financial shortfall and income history to clarify whether a reverse mortgage is an appropriate choice, says Lederer. —

Nerdwallet, The Mercury News, 10 July 2024 Unlike traditional mortgages, reverse mortgages provide borrowers with cash from the lender, eliminating the need for monthly mortgage payments. —

Essence, 14 June 2024 With a reverse mortgage, the loan balance grows over time as interest accrues, diminishing the borrower’s ownership stake (equity) in the home. —

Essence, 14 June 2024 Still, reverse mortgages or something like them seem inevitable in a nation where individuals are entirely responsible for their own retirement savings. —

Ron Lieber, New York Times, 19 May 2024 See all Example Sentences for reverse mortgage

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'reverse mortgage.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1977, in the meaning defined above

Time Traveler

The first known use of reverse mortgage was in 1977

See more words from the same year

Cite this Entry

Style

“Reverse mortgage.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/reverse%20mortgage. Accessed 27 Jul. 2024.

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