A loan based on the equity of the home that provides the homeowner with tax-free income and which is paid back when the home is sold is called a(n):

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The loan described is a reverse mortgage, which is specifically designed to provide tax-free income to homeowners based on the equity of their home, and the loan is paid back when the home is sold. This is different from a conventional mortgage, which is used to purchase a home, a growing equity mortgage which gradually increases payments over time, a second mortgage which is an additional loan on top of an existing mortgage, or an adjustable rate mortgage which has fluctuating interest rates.

A Loan Based on the Equity of the Home That