Mortgage Glossary
Reverse Mortgage
A loan for homeowners 62+ that converts equity into cash without monthly payments.
A reverse mortgage allows eligible homeowners aged 62 and older to convert part of their home equity into cash.
Unlike a traditional mortgage, no monthly principal and interest payments are required — the loan is repaid when the home is sold or the borrower no longer lives there.
Borrowers remain responsible for property taxes, insurance, and maintenance. The most common type is the FHA-insured HECM.
Frequently asked
Who qualifies for a reverse mortgage?
Homeowners aged 62+ with significant equity who live in the home as their primary residence may qualify.
Do I still own my home with a reverse mortgage?
Yes — you retain ownership and title as long as you meet the loan obligations like taxes and insurance.
Related terms
HELOC (Home Equity Line of Credit)
A revolving credit line secured by your home's equity.
FHA (Federal Housing Administration)
A government agency whose insured loans help buyers with lower credit or down payments.
Mortgage Insurance
Insurance that protects the lender if a borrower defaults on a low-down-payment loan.