A reverse mortgage allows homeowners aged 55 and older to convert part of their home equity into cash without having to sell their home or make monthly mortgage payments.

With a reverse mortgage, you receive funds based on the value of your home, which you can use as needed. The loan is repaid when you sell the home, move out permanently, or pass away.

Benefits include access to tax-free cash, no monthly mortgage payments, and the ability to stay in your home while improving your financial situation.

While reverse mortgages can be beneficial, they may reduce the amount of inheritance left for heirs and could affect eligibility for certain government benefits.

As long as you meet the loan obligations, such as paying property taxes and insurance, you can remain in your home for life.

If you move or sell your home, the reverse mortgage must be repaid, typically from the proceeds of the sale.