The reality is, a Reverse Mortgage is deigned not to remove all equity which is why based upon your age, the location and type of property determine the amount of mortgage you would qualify for.  All Reverse Mortgages have a no negative equity guarantee therefore there is no advantage to the lender if it were structured to remove all the equity

This is a myth, a Reverse Mortgage is like any other mortgage, simply a financial instrument secured against the property that needs to be settled only when you choose to sell the property.

No, you are in control of when you choose to sell the home and unlike a standard mortgage, you have additional protections.  At the end of the term of the mortgage, unless you have failed in your obligations;

• You’re still living in the home

• Maintaining the property 

• Keeping your Home Insurance in good standing 

• Property Taxes are current 

Your Mortgage continues to a new term with the rate resetting on the mortgage to the current rate and term available at that time.  Unlike a standard Mortgage when the Lender at their option can offer you a renewal

Yes!  You’re not obligated to take the full amount you may qualify for up front, you only need to take what you require to payout the existing mortgage if you have one, look after any liabilities which must be paid or satisfy the minimum amount of the initial draw, usually around $25,000.  The remainder stays on account for you to access through subsequent advances as you need the funds within some minor minimum requirements.  The important aspect of this is that interest only accrues on the amount you have drawn.  If you qualify for a $500K mortgage and only need $200K at the start, only the initial $200K accrues interest until you request additional funds.

While with a Reverse Mortgage, you don’t have an obligation to make payments unlike a standard mortgage, if you wish to pay all or part of the interest, that is easily arranged.  If you make some of these payments, it helps manage the final payout of the mortgage when you choose to sell but, if you start making payments and find you’re not able to continue, you always have the option of notifying the bank to reduce or stop taking the payments at your request.

No, as long as you’re on title and therefore a registered party to the Reverse Mortgage, there is no requalification.  The Reverse Mortgage Continues as normal without any changes and you still maintain full control of when you sell the house.  In fact, if you haven’t used all of the mortgage you qualified for, the residual balance can be used to help with the costs in looking after your Spouse/Partner.