For some families, a reverse mortgage could be a good way to generate funds for in-home care, assisted living, home modifications, and other important care needs.

Many seniors and their families find that while they’re not in a position to pay for senior care expenses with personal savings, they do have financial resources tied up in their home’s equity.

A reverse mortgage is a loan that allows you to collect cash against the value of your home without needing to sell it. You can choose whether you want these funds paid to you in consistent monthly installments or as a lump sum amount. There are no restrictions on how you can use the funds from a reverse mortgage. Because you continue to live in your home and retain title and ownership of it, you’re still responsible for taxes, insurance, and home repairs.

However, you don’t have to repay the loan for as long as you live in the home. Instead, the loan will need to be repaid when the borrower passes away, sells the home or permanently moves out.