human
Can you explain how a reverse mortgage works
assistant
A reverse mortgage is a type of loan that allows homeowners who are 62 years old or older to access the equity they’ve built up in their homes. It allows a homeowner to borrow money against the value of their home while they continue to own and live in it. The loan does not have to be repaid until the homeowner moves, sells the home or passes away. The loan is repaid when the home is sold and the loan proceeds, plus interest, are used to settle the loan. The remaining value of the home is disbursed to the homeowner or the homeowner’s heirs. Reverse mortgages can be beneficial for senior homeowners who need additional funds to supplement their income or to address an emergency expense.