Mortgage calculator, a primer
A reverse mortgage is a form of home mortgage in which a lender pays you out of the equity in your home. You receive your home's value in a lump sum or in monthly payments, and you are free to stay in your home until you move to another house, transfer to an assisted living facility or nursing home, or pass on. Will my taking out a reverse mortgage cancel out my current home mortgage? No, but the proceeds of the reverse mortgage will pay off the remainder of your home mortgage. Depending upon where you live, you might not be allowed to have any other home mortgages than the reverse mortgage on the property, so you may need to pay off your previous mortgages with the proceeds of the reverse mortgage before you can begin to use the income for other purposes. Can I will my house to my heirs if I take out a reverse mortgage on it? Of course.