A reverse mortgage is a financial tool designed for homeowners aged 62 or older, allowing them to convert home equity into cash without monthly loan repayments. Instead of paying down a traditional mortgage, a reverse mortgage provides funds—either as a lump sum, monthly payments, or a line of credit—using the home's equity as collateral. This can offer retirees a valuable source of income, helping to cover expenses or enhance financial flexibility in retirement. Repayment occurs only when the homeowner sells, moves, or passes away, making it essential to understand the benefits and implications fully.