Simply stated, a reverse mortgage converts a part of the equity in your home into spendable money. A calculation is done based on age; must be 62+, value of the home and an interest rate, to determine exactly how much is available - the older you are the more you get.
The proceeds can be paid to you at times and in amounts that you choose, and can be changed as needs change. There are no monthly payments to the lender, but the money you get , plus interest, must be repaid when you die, sell your home, or permanently move away.
Proceeds can be used for any purpose; pay off an existing loan on your home, credit cards and medical bills, take a trip, buy a car, fund education, gift to a child, home improvements or repairs; there is no restriction, it's your money and its tax free!
You maintain title and control of your property, an you can sell and move at any time if you choose to do so. You cannot be forced from your home as long as you continue to keep it in good repair, pay taxes, insurance and any HOA dues. And if you want the reverse mortgage to pay taxes and insurance for you, usually it can be arranged.
All reverse mortgage are non-recourse loans which means you are guaranteed you will not leave a debt to your heirs or estate - no matter what!