lifetime reverse mortgage

Definition

An arrangement where a homeowner borrows against the value of his or her home while retaining the title and without making payments. Unlike a standard reverse mortgage, which typically lasts for a fixed term of five or ten years, the borrower can continue to receive funds as long as they remain living in the house. When the owner no longer lives in the home, either due to passing away or moving, the property is sold to repay the loan.
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lifetime payment cap LIFFE