A reverse mortgage makes it possible for homeowners 62 or older to
convert their home equity into a home loan with deferred
payments. In most cases, those payments can be deferred for as
long as the homeowner remains living in the home as their primary
residence and does not default on certain obligations such as taxes
or insurance. Reverse mortgages can also provide qualifying
homeowners with tax-free loan proceeds which is typically used to
make retirement more enjoyable, finance housing improvements, or
to permit retirees to remain in their own home throughout their
retirement so long as the borrower pays property taxes,
homeowners insurance and costs associated with home
maintenance.