This option is available to homeowners aged 60 and older on their principal residence. This is subject to restrictions based on the location and type of residence.
A reverse mortgage does not require monthly payments, and lets you take out some tax-free money from your home. A reverse mortgage works the opposite of a conventional mortgage - a reverse mortgage has interest accumulating while equity decreases.
With a reverse mortgage, you will eventually owe more than you borrowed because of the higher interest. You are however able to make interest payments monthly or yearly.
Reverse mortgage also allows you the flexibility to decide if you want to receive your loan all at once, or throughout a set period.