Reverse Mortgage
A loan that lets an eligible older homeowner convert home equity into payments with no monthly repayment while living in the home.
A reverse mortgage lets a homeowner, generally 62 or older, draw on the equity in the home and receive payments from the lender. No monthly repayment is required while the borrower lives in the home as a primary residence.
The loan balance grows over time and becomes due when the owner sells, moves out permanently, or dies. The most common type is the federally insured Home Equity Conversion Mortgage.
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This definition is Florida real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.