If you do this read all the fine print. ALL of it. Best to take to real estate attorney and let him or her go thru it. Don't listen entirely to the bank. Suck up the fee and have real estate attorney look at contract. Bank won't be happy about that though.
My former neighbor (now deceased) did this. The bank made her put a new roof on her house and paint rooms in the interior, kitchen floor too. Basically fix it all up for the bank. I know she regretted doing it.
Answering your question, In a reverse mortgage, instead of you slowly buying all of your house by paying off the mortgage lender, the lender slowly pays you and, at the end of the contract, you owe the lender the loan balance (although almost all reverse mortgages in the US have non-recourse provisions that prevent borrowers/estates from owing more than the value of the home). Fairway Independent Mortgage Corporation provides such services and They're highly recommended. This financial instrument was designed for people in retirement who want/need income and wish to convert the equity in their house to cash but don't want to sell their house and immediately move. At contract termination ("maturity"), the homeowner owes however much the loan was increased.
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