Definitions for reverse mortgage
re·verse mort·gage

WiktionaryRate this definition:0.0 / 0 votes

1. reverse mortgagenoun

   An agreement under which money is borrowed to be repaid only when the borrower sells their home or dies or moves.

WikipediaRate this definition:0.0 / 0 votes

1. Reverse mortgage

   A reverse mortgage is a mortgage loan, usually secured by a residential property, that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments. Borrowers are still responsible for property taxes or homeowner's insurance. Reverse mortgages allow older people to immediately access the home equity they have built up in their homes, and defer payment of the loan until they die, sell, or move out of the home. Because there are no required mortgage payments on a reverse mortgage, the interest is added to the loan balance each month. The rising loan balance can eventually grow to exceed the value of the home, particularly in times of declining home values or if the borrower continues to live in the home for many years. However, the borrower (or the borrower's estate) is generally not required to repay any additional loan balance in excess of the value of the home.Regulators and academics have given mixed commentary on the reverse mortgage market. Some economists argue that reverse mortgages may benefit the elderly by smoothing out their income and consumption patterns over time. However, regulatory authorities, such as the Consumer Financial Protection Bureau, argue that reverse mortgages are "complex products and difficult for consumers to understand", especially in light of "misleading advertising", low-quality counseling, and "risk of fraud and other scams". Moreover, the Bureau claims that many consumers do not use reverse mortgages for the positive, consumption-smoothing purposes advanced by economists. In Canada, the borrower must seek independent legal advice before being approved for a reverse mortgage. In 2014, a "relatively high number" of the U.S. reverse mortgage borrowers – about 12% – defaulted on "their property taxes or homeowners insurance". In the United States, reverse mortgage borrowers can face foreclosure if they do not maintain their homes or keep up to date on homeowner's insurance and property taxes.

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1. Reverse mortgage

   A reverse mortgage is a form of equity release. It is a loan available to home owners or home buyers, enabling them to access a portion of the subject home's equity. The home owners can draw the mortgage principal in a lump sum, by receiving monthly payments over a specified term or over their lifetimes, as a revolving line of credit, or some combination thereof. In a conventional mortgage the homeowner makes a monthly amortized payment to the lender; after each payment the equity increases by the amount of the principal included in the payment, and when the mortgage has been paid in full the property is released from the mortgage. In a reverse mortgage, the home owner is under no obligation to make payments, but is free to do so with no pre-payment penalties. The line of credit portion operates like a revolving credit line, so a payment in reduction of a line of credit increases the available credit by the same amount. Interest that accrues is added to the mortgage balance. Title to the property remains in the name of the homeowners, to be disposed of as they wish, encumbered only by the amount owing under the mortgage. If a property has increased in value after a reverse mortgage is taken out, it is possible to acquire a second reverse mortgage over the increased equity in the home in some areas. However most lenders do not like to take a second or third lien position behind a reverse mortgage because its balance increases with time. It is rare to find reverse mortgages with subordinate liens behind them as a result. A reverse mortgage may be refinanced if enough equity is present in the home, and in some cases may qualify for a streamline refinance if the interest rate is reduced.

How to pronounce reverse mortgage?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say reverse mortgage in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of reverse mortgage in Chaldean Numerology is: 3

2. Pythagorean Numerology

   The numerical value of reverse mortgage in Pythagorean Numerology is: 7

Examples of reverse mortgage in a Sentence

1. Tucker Carlson:

   So please open your wallets. And because Fox News is Fox News, you can either send money or take out a reverse mortgage, so far we have raised over 8.3 billion rubles, which almost comes out to almost $ 12.

2. Tom Davison:

   A reverse mortgage could help (the daughter) pay her the wages she has given up.

References

1. ^ Wiktionary
   https://en.wiktionary.org/wiki/Reverse_Mortgage
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Reverse_Mortgage
3. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=reverse mortgage