A reverse mortgage is a unique financial tool designed specifically for seniors aged 62 and older. It allows homeowners to convert part of the equity in their home into cash without having to sell the house or take on additional monthly mortgage payments. This can be particularly beneficial for seniors who are looking for a way to supplement their retirement income.

Unlike a traditional mortgage, where you make monthly payments to the lender, with a reverse mortgage, the lender makes payments to you. The loan is repaid when the homeowner sells the home, moves out permanently, or passes away. At that point, the proceeds from the sale of the home are used to repay the loan, including interest and fees.

There are several ways to receive the funds from a reverse mortgage: as a lump sum, monthly payments, a line of credit, or a combination of these options. This flexibility allows seniors to tailor the financial support to their specific needs.

While reverse mortgages can provide financial relief and help cover medical expenses, home renovations, or other needs, it's important to consider the associated costs and implications carefully. Interest and fees can add up, and the loan balance increases over time, potentially reducing the inheritance for heirs.

Seniors interested in a reverse mortgage should consult with a financial advisor to fully understand the terms and ensure it aligns with their long-term financial goals.