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Glossary Finance

Reverse mortgage

A reverse mortgage lets older homeowners borrow against their home equity, with no monthly payment; the loan is repaid when the home is sold or the owner leaves.

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In more detail

Interest and fees are added to the balance, so the debt grows and the equity shrinks over time. The amount available depends on age, home value and rates. Read the terms carefully and get independent advice.

Try these tools

Reverse Mortgage Calculator

Get a ballpark estimate of how much cash a reverse mortgage (HECM-style) could make available from your home equity, based on your age.

See also

  • Glossary Equity
    Equity is the part of an asset you truly own: its current value minus what you still owe against it.
  • Glossary HELOC
    A HELOC (home equity line of credit) is a revolving credit line secured by your home, with a draw period followed by a repayment period.
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