Reverse mortgages have recently grown in popularity, with more homeowners recognizing their potential as a retirement strategy.

reverse mortgage is a type of home loan for older homeowners. Unlike traditional mortgages, they don’t require homeowners to make monthly payments. Instead, the borrower receives payment from the lender — either monthly, via a line of credit or in a single lump sum at closing.

These loans are typically reserved for borrowers 62 and up (though some lenders allow for ages down to 55). Homeowners often use them to reduce their monthly housing costs or increase their income in retirement.

Keep reading to learn more about reverse mortgages, how they work and whether one might be right for your financial goals.