A reverse mortgage is similar to a conventional mortgage in the sense that it allows homeowners to borrow money using their homes as security. Instead of having to make a mortgage payment each month the principal and interest are added to the loan amount.
With a reverse mortgage, you still have the choice to make a mortgage payment. However, it is not required. The only requirement is that you pay your homeowners insurance, property taxes and maintain the home.
Reverse mortgages can be a great solution for retirement. In some cases, you can even be eligible for a reverse mortgage if you are 55 years or older.