human
I've heard of the term “reverse mortgage,” but what exactly is it?
assistant
Reverse mortgages are a type of home loan that allows homeowners to access their home equity without having to sell the property. The borrower receives monthly payments from the lender and can use those funds for whatever they choose, such as paying off existing debt, making improvements or renovations to the property, or simply living expenses. When the borrower no longer wants to pay back the loan, the property is usually sold at market value.