Your existing mortgage will be paid off completely with proceeds from the reverse mortgage as a requirement of the loan. This eliminates your monthly mortgage payments*, freeing up that money for other needs like home upgrades, medical expenses or helping loved ones financially.
*The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.
