A reverse mortgage is a financial tool that allows senior homeowners, typically age 62 or older, to convert part of the equity in their home into tax-free income without having to sell the property or make monthly mortgage payments. Unlike traditional loans, repayment of a reverse mortgage is deferred until the homeowner moves out, sells the home, or passes away. This makes it an attractive option for retirees who have built substantial equity in their homes but may not have sufficient liquid assets to support their lifestyle in retirement.

For many seniors, a reverse mortgage can provide an additional source of steady income to supplement Social Security, pensions, and personal savings. The funds can be received in a lump sum, monthly payments, or as a line of credit, giving retirees flexibility to design a payout structure that matches their financial needs. This extra cash flow can help cover everyday living expenses, reduce financial stress, and allow retirees to enjoy a more comfortable retirement without the fear of outliving their savings.

In addition, reverse mortgages can play an important role in planning for long-term care. The proceeds can be used to pay for in-home care, assisted living, or other medical expenses that arise later in life. By leveraging home equity, seniors can access a pool of funds dedicated to care needs without prematurely depleting retirement accounts or burdening family members. When thoughtfully integrated into a retirement strategy, a reverse mortgage can be a valuable safety net, offering both financial security and peace of mind for seniors facing the rising costs of healthcare and long-term care.