Reverse Mortgage
A loan that lets an eligible older homeowner draw on home equity without scheduled monthly principal-and-interest payments.
A reverse mortgage lets an eligible homeowner, generally age 62 or older for a Home Equity Conversion Mortgage, draw on home equity. The borrower does not make scheduled monthly principal-and-interest payments but must continue meeting obligations such as property taxes, insurance, maintenance, and primary-residence requirements.
The balance grows over time and generally becomes due when the last eligible borrower sells, dies, permanently moves out, or no longer meets the loan requirements. The most common type is the federally insured Home Equity Conversion Mortgage.
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This definition is Texas 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.