Reverse Mortgage

Reverse Mortgage means:
a loan whereby an owner borrows against the equity in his or her residence, in a lump sum or by periodic receipts, and defers repayment until some time in the future. Reverse mortgage plans are intended to assist elderly homeowners who need cash but do not wish to sell their homes. The loan proceeds are not taxable, and the accrued interest is not deductible by a cash basis taxpayer, until the entire loan has been repaid. The interest is treated as home equity indebtedness, subject to the $100,000 limit. See home mortgage interest.