What is a common outcome of a reverse mortgage?

A reverse mortgage is a financial product designed primarily for older homeowners that allows them to convert a portion of their home equity into cash. This is typically done while they continue to live in and maintain ownership of the home. The most common outcome of a reverse mortgage is indeed access to cash while living in the home.

With a reverse mortgage, the homeowner receives funds that can help cover living expenses, healthcare costs, or other financial needs, allowing them to stay financially stable without requiring them to sell their home. This funding can come in various forms, such as a lump sum, monthly payments, or a line of credit.

The arrangement allows the homeowner to utilize the equity built up in the home without needing to make monthly mortgage payments or relocate, as the loan is typically repaid upon the homeowner's departure from the property, whether through selling the home, moving to a nursing facility, or passing away.

This makes the option of accessing cash while remaining in the home the most fitting outcome, as it directly reflects the fundamental purpose of a reverse mortgage.