Mortgage where the lender pays a borrower a fixed monthly payment
based on the value of the property. It allows the borrower to receive monthly receipts against the
equity in his or her home. It is designed for senior citizen who own their homes and require
additional funds to pay current living expenses, but do not wish to sell their homes. At the end of
the payment term, usually 10 or 15 years, the mortgage on the borrower's home equals a predetermined
sum so that the value of the equity is reduced by the amount. The loan is not repaid until sale of
the property or the death of the borrower when it is settled through normal probate procedures.