A reverse mortgage is a type of loan available to homeowners who are at least 62 years old, and it allows them to convert part of their home's equity into cash without having to sell their home or make monthly mortgage payments. Instead, the loan is repaid when the borrower no longer occupies the home, typically when they sell the home, move out permanently, or pass away.

With a reverse mortgage, the lender makes payments to the borrower based on the equity in their home. The borrower can choose to receive the payments as a lump sum, line of credit, monthly payments, or a combination of these options. The amount of the loan and the interest rate are based on the age of the borrower, the value of the home, and the prevailing interest rates.

One important thing to note is that the borrower must continue to pay property taxes, homeowners insurance, and maintenance costs on the home. Failure to do so can result in default and foreclosure.
Reverse mortgages can be a good option for older homeowners who have significant equity in their home and want to supplement their retirement income or pay for unexpected expenses.. It's important to carefully consider the costs and risks before deciding whether a reverse mortgage is right for you.