A reverse mortgage allows homeowners aged 55 and older to borrow against their home equity without making monthly mortgage payments. Instead of paying the loan down over time, the balance grows and is repaid when the home is sold or the owner moves or passes away.
Funds from a reverse mortgage are typically tax-free and can be taken as a lump sum, regular payments, or a combination of both. Many homeowners use this option to supplement retirement income, cover medical costs, or manage cash flow without selling their home.