Reverse Mortgage
Categories: Bonds, Real Estate
An agreement that lets you get paid for your house (rather than you paying for a mortgage).
It works like this: You have equity in your house (that's the value of your house not tied up in loans) to the tune of $100,000, and you sign a reverse mortgage agreement which lets you get monthly checks tax-free. You pay for whatever you want, and the money lasts as long as the equity in your house does. When those payments hit $100,000, there's no more cash to be squeezed out.