Reverse Mortgage
A loan for homeowners 62+ that converts home equity into cash without requiring monthly payments.
In plain English
A reverse mortgage pays the homeowner (rather than the other way around) using their home's equity, with the loan balance repaid when they sell, move out, or pass away. It's generally aimed at retirees, not first-time buyers.
Worth knowing as a homeownership concept even if it's not relevant to your first purchase — it's a common source of confusion for people encountering real estate terms for the first time.
Where you'll run into it
Guides and tools on TheBuyingPath that cover reverse mortgage in context.
Related terms
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