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reverse mortgage

   Also found in: Financial, Wikipedia 0.01 sec.
reverse mortgage
n.
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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Despite drops in property value over the last two years, many seniors (and baby boomers) who have reached the reverse mortgage eligibility age of 62 still have significant equity in their properties and are using it to assist with living expenses, real estate taxes, or medical costs.
The economic needs of these three generations combined could increase the demand for reverse mortgages even when seniors don't need a reverse mortgage to meet their own individual needs.
A reverse mortgage enables homeowners older than sixty-two years of age to convert the equity in their homes into tax-free income while they continue to reside at their property.
 
 
 
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