Which of the following best defines a reverse mortgage?

The definition of a reverse mortgage is accurately captured in the response. A reverse mortgage is specifically designed for older homeowners, typically aged 62 and above, allowing them to convert part of the equity in their home into cash. Unlike traditional mortgages, a reverse mortgage does not require monthly payments; instead, the loan balance increases over time as interest accrues, and repayment is generally deferred until the homeowner moves out, sells the home, or passes away.

This arrangement is particularly beneficial for senior homeowners who may have limited income and need access to funds for various expenses like healthcare or daily living costs, without the burden of monthly mortgage payments. By leveraging the equity of their home, older individuals can maintain their standard of living while continuing to live in their property.

The other options do not accurately describe a reverse mortgage. The requirement of monthly payments, targeting younger homeowners, or focusing on home repairs does not align with the core concepts of what a reverse mortgage entails. Therefore, the understanding that this type of home loan is specifically structured for older homeowners and allows them to live without the need for monthly repayments is crucial.