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Mortgage Glossary

Reverse Mortgage

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

A reverse mortgage lets homeowners 62 and older convert equity into cash without monthly mortgage payments, with the balance due when they leave the home.

What Reverse Mortgage means

The most common type is the FHA-insured HECM. Interest accrues and the loan is repaid from the home's sale or estate, while the borrower stays current on taxes and insurance.

Florida example

A Florida retiree taps a reverse mortgage to supplement income, drawing monthly payments against their paid-off home. The loan comes due when they sell, move out permanently, or pass away.

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Related Mortgage Terms

Right of RescissionRural Development LoanSecond Mortgage
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