A mortgage which does not conform to credit or other standards, or to the maximum loan limits set by Fannie Mae and Freddie Mac. See Home Equity Conversion Mortgage.
MP] A mortgage loan to an elderly homeowner on which the borrower’s debit rises over time, but that need not be repaid until the borrower dies, sells the house, or moves out permanently.
A source of funds for older people who have equity in their homes and need additional retirement money. The homeowner gets monthly payments that add to the mortgage balance. When the homeowner dies, sells the home, or moves out, the mortgage is paid off from the proceeds of the home sale. A reverse mortgage allows older people to remain in their homes while borrowing against the equity.
A loan against a home that can be paid to the homeowner as a lump sum, a cash advance or a line of credit. Used by some homeowners as a source of income in retirement.
A loan that enables elderly homeowners, to use their home's equity without selling their home or moving from it. A lending institution makes a check out to the homeowners each month. This payment is really a loan against the value of a home. Because the payment is a loan, it's tax-free when the homeowners receive it. These loans are non-recourse.
Unlike an ordinary mortgage, which involves payments by the borrower to the lender, a reverse mortgage involves payments by the lender to the borrower. It is an arrangement whereby homeowners get cash (usually in the form of monthly payments or a lump sum) in return for a mortgage on their home, which is used as security against the loan. This is a strategy sometimes used by retired homeowners who need to supplement their income. A reverse mortgage is one way of tapping into the value of a home.
a non-recourse loan against home equity providing cash advances to a borrower and requiring no repayment until a future time
A reverse mortgage is a type of loan available to seniors (62 and over in the US), used as a way of converting their home equity (the value of the home, minus the amount of any existing mortgages) into one or more cash payments while retaining ownership of the property (continuing to live there) and avoiding monthly payments. Repayment of the loan is deferred until the borrower is no longer living in the home. Up
A tax-free loan for home owners whose mortgage is paid in full, but want to use the equity in their home.
A special type of mortgage that enables older home owners to convert the equity they have in their homes into cash, using a variety of payment options to address their specific financial needs. Unlike traditional home equity loans, a borrower does not qualify on the basis of income but on the value of his or her home. In addition, the loan does not have to be repaid until the borrower no longer occupies the property.
A tool that an elderly homeowner uses to convert the equity of their home into cash. No payments are made on a reverse mortgage until the borrower dies or moves out.
An arrangement where a lender makes monthly payments to the homeowner in an amount based on the age and health of the homeowner, the term of the loan, and the value of the home. Payments may be for a set period or for as long as they live in the home; some plans also offer a line of credit so the homeowner can use the money only when they need it. In most plans, the homeowner retains title to the home, and need not repay any of the money until he/she moves or dies.
A special type of home equity loan for persons 62 and older. Reverse mortgages allow owners to convert some of the equity in their homes to cash. The loan does not usually have to be repaid during the homeowner's lifetime. Loan advances are not taxable and do not affect the homeowner's Social Security or Medicare benefits.
A special program (generally for the elderly) that provides income until death. Payments are made by increases in the principal amount of the loan.
A financial planning tool available to the elderly who are "house rich and income poor" allowing them to remain in their homes as long as possible by allowing homeowners to convert the equity in their principal residence into cash without selling their home.
A mortgage agreement allowing a homeowner to borrow against home equity and receive tax-free payments until the total principal and interest reach the credit limit of equity, and the lender is either repaid in full or takes the house.
A special type of home loan that lets elderly homeowners convert the equity in their home to cash.
A home loan you do not have to pay back for as long as you live in the home. Repayment of the loan is due when the last surviving homeowner dies, sells the home, or permanently moves away.
A reverse mortgage is a loan extended to elderly borrowers with their house held as a collateral. The entire amount of the loan is repaid when the borrower dies by selling the property. The loan is paid out in monthly installments and repaid at one time, exactly the opposite from a regular mortgage, which initially provides borrowers with a set amount of money and then accepts monthly payments to repay the loan over a fixed term. The mortgage has become popular among elderly U.S. home owners who have finished repaying their ordinary mortgages but need funds to support their daily lives, among other purposes. Trust banks introduced reverse mortgages to Japan in the 1980s, but few Japanese consumers used them as rising real estate prices at that time made most of them reluctant to sell their dwellings. The banks withdrew from the market by the mid-1990s, as the plunging land prices after the collapse of the bubble economy had reduced the collateral value of homes.
A loan that enables elderly homeowners to borrow against the equity in their house without selling it or moving from it. Repayment only occurs at the time of the sale of the property.
A form of mortgage in which the lender makes periodic payments to the borrower, using the borrower's equity in the home as security. For older owners who have a lot of equity in their home, this can be used as income. The loan does not need to be repaid until the borrower sells the property or moves into a retirement community.
A financial tool which provides seniors with funds from the equity in their homes. Generally, no payments are made on a reverse mortgage until the borrower moves or the property is sold. The final repayment obligation is designed to not exceed the proceeds from the sale of the home.
A special type of mortgage that allows one to convert the equity in his home into a lump sum payment, monthly income, or a line of credit
Is a loan against your home, for homeowners age 62 or higher, which requires no repayment for as long as you live there.
A loan that allows an older homeowner to convert built-up equity into cash. The loan comes due when the owner dies, sells the house or moves out.
Also called a Home Equity Conversion Mortgage (HECM), what makes this type of mortgage unique is that instead of making payments to a lender, the lender makes payments to you. It enables older home owners to use their equity and convert it to cash, in the form of monthly payments. Unlike traditional home equity loans, a borrower can qualify solely on the value of his / her home. The loan doesn't have to be repaid until the recipient no longer occupies the home. Please see our guide to the various types of mortgages to learn more.
A form of home equity loan which allows homeowners, usually seniors, to borrow against the equity in their homes without having to repay the loan until the owners sell the property, move or die.
Also called "equity conversion mortgage," these loans permit senior citizens to convert the equity in their homes to income. The lender makes monthly cash payments to the homeowner, and repayment is deferred for a set period or until the homeowner dies and the house is sold.
A reverse mortgage enables elderly homeowners, typically who are low on cash, to tap into their home's equity without selling their home or moving from it. Specifically, a lending institution makes a check out to you each month, and you can use the check as you want. This money is really a loan against the value of your home; because the money that you receive is a loan, the money is tax-free when you receive it. The downside of these loans is that they deplete your equity in your estate, the fees and interest rates tend to be on the high side, and some require repayment within a certain number of years.
Money borrowed by senior citizens using their home as collateral. This loan has to be repaid from the proceeds of the estate when the owner dies.
A loan giving a senior homeowner the ability to change home equity into cash. Usually no payments are due until the senior moves, passes away, or the home is sold. The loan is due when the senior dies, moves, or sells. The final payment is calculated to not exceed the home's selling price.
A special type of loan available to equity-rich, older owners. Repayment is not necessary until the borrower sells the property or moves into a retirement community.
a home loan that gives cash advances to a homeowner, requires no repayment until a future time, and is capped by the value of the home when the loan is repaid.
a home loan that provides cash to a homeowner and which is capped by the value of the home when the loan is paid off.
A mortgage that pays a homeowner loan proceeds drawn from accumulated home equity; reverse mortgages permit the borrower to retain homeownership, and generally do not require repayment as long as the borrower remains in the home.
A mortgage agreement that allows a homeowner to borrow against their home's equity and receive tax-free payments in the form of a monthly annuity. With a reverse mortgage, you remain the owner of your home just like when you had a regular mortgage. You are still responsible for paying your property taxes and homeowners insurance, and for making property repairs. When the loan is over, you or your heirs must repay all of the payments you received plus interest. (Reputable lenders don't want your house; they want repayment.) All reverse mortgages are due and payable when the last surviving borrower dies, sells the home, or permanently moves out of the home. (Typically, a "permanent move" means that neither you nor any other co-borrower has lived in your home for one year.) For more information, visit AARP's Reverse Mortgage Guide for Consumers.
a special program for the elderly that provides income until death. Payment requirements are arranged through the increase in the principal amount of the loan.
A mortgage used by the elderly that provides income as long as they live in exchange. Payments made cause the loan principal to increase.
A mortgage agreement that allows older homeowners to borrow against the equity in their homes without having to sell their homes or take on additional monthly payments. The homeowner receives money from the mortgage company and does not have to pay it back for as long as they live in the house. There are three types of reverse mortgages: Single Purpose, Home Equity Conversion Mortgages (HECM) and Proprietary reverse mortgages.
A special type of loan available to equity-rich, older home owners. Repayment is not necessary until the borrower sells the property. Many downsides exist to these loans.
Reverse mortgages provide homeowners tax-free cash without ever having to make regular monthly payments. To qualify for a reverse mortgage you must be at least 62, own a home and live in the home. Borrowers can receive a lump-sum cash payment, a monthly payment for a fixed term or a line of credit.
A mortgage in which a lender may make scheduled monthly payments to the borrower using mortgage-free property as collateral.
A reverse mortgage is a special type of loan used by older Americans to convert the equity in their homes into cash. The money from a reverse mortgage can provide seniors with the financial security they need to fully enjoy their retirement years. The reverse mortgage is aptly named because the payment stream is "reversed." Instead of making monthly payments to a lender, as with a regular first mortgage or home equity loan, a lender makes payments to you.
A type of mortgage loan that allows elderly homeowners to convert built-up equity into cash. The loan comes due if the homeowner sells, moves, or passes away.
A special type of loan used to convert the equity in a home into cash. The money obtained through a reverse mortgage is usually used to provide seniors with financial security in their retirement years.
An equity loan that allows a homeowner to receive tax-free payments on a monthly basis up to the credit limit, which is based on equity in the home.
Mortgage in which the lender pays the borrower a sum of money each month as opposed to a lump sum (cash-out) afterwhich the title to the property is conveyed to the mortgagee.
A loan on home equity. The lender makes regular tax-free payments to the homeowner for life.
A mortgage used by the elderly in which they receive an income (payments) as long as they are alive. The principal of the loan increases as these payments are made, hence the term reverse.
A mortgage available to persons over the age of 62, that releases a flow of payments from equity earned in their primary residence without having to sell and move from their homes. Because the borrower makes no monthly payment, the loan amount grows larger as the equity decreases.
A way of converting the equity of one's home into cash without having to sell the home.
See Home Equity Conversion Mortgage (HECM).
Arrangement under which an elderly homeowner, who does not need to meet income or credit requirements, can draw against the equity in the home with no immediate repayment.
A reverse mortgage (known as lifetime mortgage in the UK) is a loan available to seniors (62 and over in the US), and is used to release the home equity in the property as one lump sum or multiple payments. The home owner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves (i.e. into aged care). http://www.lendinghand.com.au/articles/reversemortgages.php Reverse Mortgages - Making Your Equity Work For You Reverse Mortgage Article From Australia.