Which type of mortgage allows homeowners to access their home equity while remaining in their property?

A reverse mortgage is specifically designed for homeowners, typically seniors, to access their home equity while continuing to live in their property. This type of financing allows borrowers to convert part of the equity in their home into cash, which can be used for various expenses like healthcare, home improvements, or other financial needs without the burden of monthly mortgage payments. The loan is repaid when the homeowner either sells the home, moves out, or passes away, at which point the proceeds from the home's sale will cover the loan amount plus interest and fees.

In contrast, conventional mortgages, home equity lines of credit (HELOCs), and adjustable-rate mortgages each serve different purposes and do not allow the same access to equity without requiring additional payments. Conventional mortgages typically involve monthly payments towards the loan principal and interest. A HELOC permits homeowners to borrow against their equity, but it often requires repayment over time, resulting in monthly obligations. Adjustable-rate mortgages, on the other hand, adjust the interest rate over time, which can increase payment amounts and does not inherently provide access to equity. Therefore, among the given options, a reverse mortgage uniquely supports homeowners in tapping into their home equity without the immediate need for repayment while they remain in their residence.