Dictionary

reverse mortgage

noun

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

Full Definition of REVERSE MORTGAGE

:  a mortgage that allows especially 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
ADVERTISEMENT

First Known Use of REVERSE MORTGAGE

1977

Browse

Next Word in the Dictionary: reverse of the medalPrevious Word in the Dictionary: reversementAll Words Near: reverse mortgage
ADVERTISEMENT
How to use a word that (literally) drives some people nuts.
Test your vocab with our fun, fast game
Ailurophobia, and 9 other unusual fears