What is a common characteristic of a reverse mortgage?

A common characteristic of a reverse mortgage is that there are no required monthly mortgage payments. This feature distinguishes reverse mortgages from traditional loans, where borrowers must make regular payments to the lender. Instead, with a reverse mortgage, the loan balance increases over time as interest accumulates, and the homeowner retains the title of the property. Instead of making monthly payments, the borrower can access the equity in their home, which can provide income during retirement or help cover living expenses.

This arrangement is specifically designed for homeowners aged 62 and older, allowing them to convert a portion of their home equity into cash without the burden of monthly payments. The loan becomes due when the homeowner sells the house, moves out of the home, or passes away, at which point the property can be sold to repay the outstanding loan amount.