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

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A reverse mortgage is specifically designed for homeowners over the age of 62 who have a significant amount of equity in their home. The loan provides tax-free income to the homeowner and is paid back when the home is sold. This option is best suited for seniors who want to supplement their retirement income and have no plans to move or sell their home in the near future.

A Loan Based on the High Equity in a Home