Reverse mortgage loan Meaning and Definition

Reverse Mortgage Loan

Reverse Mortgage Loan

Pronunciation

/ˈrɛvrz ˈmɔrɡɪdʒ laʊn/

Part of Speech

Noun

Definition

A reverse mortgage loan is a type of loan in which equity in a property is used to generate cash flow for the homeowner, with no monthly mortgage payments due on the loan.

Examples

  • Many seniors use reverse mortgage loans to supplement their retirement income.
  • Reverse mortgage loans can be a viable option for homeowners who need cash to pay medical expenses.

Synonyms

  • Home equity loan
  • Home equity conversion mortgage

Antonyms

  • House sale
  • Home equity line of credit

Etymology

The term “reverse mortgage” was coined in the 1960s, with the first reverse mortgage loan being originated in the United States in 1961.

Usage Notes

When using the term “reverse mortgage loan,” clarifying the specific type of loan being referred to is important, as there are different types of reverse mortgage loans available, such as HECM (Home Equity Conversion Mortgage) and proprietary reverse mortgage loans.

Cultural References

Reverse mortgage loans have been mentioned in various TV shows and movies, such as “The Golden Girls” and “The Best Exotic Marigold Hotel.”

Idiomatic Expressions or Phrases

“Reverse mortgage loan” is often used in idiomatic expressions or phrases, such as “reverse mortgage loan fraud” or “reverse mortgage loan scams.”.

Related Words or Phrases

Related words or phrases include “home equity,” “home equity loan,” and “mortgage.”

Collocations

Common collocations with “reverse mortgage loan” include “senior homeowners,” “retirement income,” and “debt relief.”

Frequency of Use

According to Google Trends, the term “reverse mortgage loan” gained popularity around 2010 and has since remained relatively constant in its usage.

Common Misspellings

Common misspellings of “reverse mortgage loan” include “revers mortgage loan,” “revers mortgage,” and “reverse mortgag loan.”

Related Words