How does it work? With a Reverse Mortgage, the homeowner borrowers small amounts - monthly or at other intervals through a line of credit.  Over the course of time, the loan balance gets larger, and equity gets smaller.  Payment is required only once, at the end of the loan, which in most cases is when the homeowner sells or no longer uses the home as a primary residence.

Flexible Access to Extra Income

Reverse Mortgages allow borrowers to obtain loan proceeds:

• In a lump sum to consolidate debts or to cover large expenses.
  

• In monthly installments to supplement income.
  

• Or, as a line of credit to draw on as necessary. 
  

There is even a choice for an immediate cash advance in addition to monthly allotments, and borrowers can change funds-distribution plans as many times as they wish.  The funds received from a Reverse Mortgage are tax free and does not affect regular Social Security or Medicare