West Virginia Mortgage Law Practice Test 2026 - Free Mortgage Law Practice Questions and Study Guide

A reverse mortgage is specifically designed for homeowners, typically seniors, to convert their home equity into cash. This financial product allows elderly homeowners to access the equity they have built up in their homes without the obligation to make monthly mortgage payments. Instead, the loan is repaid when the homeowner moves out of the home, sells it, or passes away. This can provide significant financial relief for retirees, enabling them to cover living expenses or health care costs while continuing to live in their own homes.

The nature of this loan is what makes it distinct. It does not require immediate repayment, unlike typical mortgages that demand regular payments. Instead, the amount borrowed, along with interest, accumulates and is paid off at a later date, making it accessible for those who may have limited income during retirement. This flexibility is a key feature that differentiates a reverse mortgage from other types of loans and mortgages.