Finance
What is a 'reverse mortgage' and how does it work in Delaware?
AA mortgage where the interest rate decreases (reverses) over time
BA loan available to homeowners 62+ that allows them to convert home equity into cash payments without monthly repayment obligations — the loan is repaid when the homeowner sells, moves out, or dies✓ Correct
CA mortgage where the buyer makes payments to the seller rather than a bank
DA refinancing product available only to investors with negative equity
Explanation
A reverse mortgage (most commonly the FHA-insured HECM) allows Delaware homeowners 62+ to borrow against their equity without monthly payments. Interest accrues and adds to the loan balance. The loan becomes due when the borrower sells, moves out for 12+ consecutive months, or dies. Heirs can repay the loan and keep the home, or sell and retain any remaining equity.
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