Reverse mortgages are special home loans designed with seniors in mind.
If you have considerable equity in your home, you may be able to convert that asset into income. Payments are made directly to you, and as long as you live in the home, the loan never has to be repaid.
The disbursement options on a reverse mortgage loan are flexible. You can access your money by:
Taking a lump sum
Establishing a line of credit to use as needed
Arranging a combination of the above options
If your needs change over time, your payout schedule can change, too.
If you permanently leave the home, the balance on your reverse mortgage becomes due. Selling the home itself can pay for this - any remaining equity belongs to you or your heirs.