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reverse mortgage

A reverse mortgage is a special type of mortgage in which the homeowner takes equity out of their homes in order to generate money to live on. (noun)

An example of a reverse mortgage is a mortgage where a senior or retired homeowner is paid monthly payments out of the equity in their home, instead of having to pay monthly payments, without being at risk of losing the house as long as they continue to live in it.

See reverse mortgage in Webster's New World College Dictionary

a loan typically given to an older person who owns a house, usually disbursed in monthly installments, and charged against the homeowner's equity

See reverse mortgage in American Heritage Dictionary 4

noun

A mortgage in which a homeowner, usually an elderly or retired person, borrows money in the form of annual payments which are charged against the equity of the home.

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