reverse mortgage

noun

Definition of reverse mortgage

: 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 So could downsizing or tapping your home equity with a reverse mortgage. Liz Weston, oregonlive, "Liz Weston: Clock is ticking for older workers just now starting retirement savings," 13 Mar. 2021 Much of this discussion about using cash value as a buffer asset has a corresponding parallel to opening a line of credit with a reverse mortgage and treating it as a volatility buffer asset. Wade Pfau, Forbes, "Adding Whole Life Insurance Cash Value As A Volatility Buffer In Retirement," 4 Mar. 2021 And then, in 2014, he was evicted as part of a dispute with his reverse mortgage lender that continues to this day. Steve Lopez Columnist, Los Angeles Times, "Column: He promised his wife he’d keep the house. Then he took out a reverse mortgage," 19 Dec. 2020 The fine print is considerable on reverse mortgage contracts, and each year, scads of them end up in default. Steve Lopez Columnist, Los Angeles Times, "Column: He promised his wife he’d keep the house. Then he took out a reverse mortgage," 19 Dec. 2020 Among other things, a reverse mortgage grows in credit capacity as the homeowner ages, says Shelley Giordano, the founder of the Academy for Home Equity in Financial Planning at the University of Illinois at Urbana-Champaign. Robert Powell, USA TODAY, "How long does your money need to last? Here are 4 ways to avoid running out of funds in retirement.," 18 Dec. 2020 For Gutierrez, who took out a $60,000 reverse mortgage with Bank of America in 2009, the benefits were many. Steve Lopez Columnist, Los Angeles Times, "Column: He promised his wife he’d keep the house. Then he took out a reverse mortgage," 19 Dec. 2020 Among the victims was Florence Puana, Katherine’s 100-year-old grandmother; Puana lost her home of 58 years after Katherine pocketed the money from a reverse mortgage plot. Washington Post, "A prosecutor and police chief were adored in their community. Then their scheme unraveled.," 3 Dec. 2020 Kealoha came to Puana and her son Gerard Puana with an idea about taking out a reverse mortgage on her grandmother’s home to help buy a condo her uncle wanted. Jennifer Sinco Kelleher, USA TODAY, "'Stranger than fiction': Ex-Hawaii prosecutor, police chief sentenced to prison for corruption," 2 Dec. 2020

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'reverse mortgage.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of reverse mortgage

1977, in the meaning defined above

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Time Traveler for reverse mortgage

Time Traveler

The first known use of reverse mortgage was in 1977

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Statistics for reverse mortgage

Last Updated

29 Mar 2021

Cite this Entry

“Reverse mortgage.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/reverse%20mortgage. Accessed 10 Apr. 2021.

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More Definitions for reverse mortgage

reverse mortgage

noun

English Language Learners Definition of reverse mortgage

chiefly US, finance : a legal agreement in which a bank pays you an amount of money equal to the part of your home's value that you actually own, and you agree that when you sell your home or when you move or die, that amount of money plus interest will be paid to the bank

reverse mortgage

Legal Definition of reverse mortgage

— see mortgage

Comments on reverse mortgage

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