One of the most popular ways to borrow money via a reverse mortgages these days is a ‘line of credit’. This is where you establish a pre-approved limit, but you only draw on the funds as you need them.
This is great for ‘rainy days’ and emergencies, and is usually a much more cost effective way to access your equity.
As an example, if you were 65 years of age and owned a house worth $400,000, you could access up to $80,000 as a reverse mortgage. With some leenders, you could choose to establish all of this as a line of credit. Although the $80,000 is always available you are not contractually obliged to use any of it, and you will ONLY be charged interest on what you do use. For more info, check out this Equity Release Guide.