Nearly all RMs are insured by the Federal Housing Administration through its Home Equity Conversion Mortgage (HECM) program.

FORBES: Reverse Mortgages Fall Short of Their Potential, Says a New Government Report

Today, 70 percent of HECM loans are fixed rate, where proceeds are disbursed only through a single lump sum.

FORBES: Reverse Mortgages Fall Short of Their Potential, Says a New Government Report

Nor did the trustee prove that the amount of interest in the homestead increased in value by virtue of the HECM transaction.

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First question posed to prospective HECM reverse mortgage shoppers: Is it important to you to leave your home to your heirs without debt?

FORBES: Mortgage Professor Helps Seniors Shop For Reverse Mortgages

They can also choose an alternative, called a HECM Saver loan, where they pay much lower fees but can borrow less and may pay a higher effective interest rate.

FORBES: Reverse Mortgages Fall Short of Their Potential, Says a New Government Report

While most HECM reverse-mortgage options carry adjustable rates and offer a line of credit or annuity-like payouts over time, the sole fixed-rate HECM choice is available only with a lump-sum payout.

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An online HECM calculator Guttentag developed lets consumers choose any combination of these options and project the outcome for every year until they reach age 100 (you can use it anonymously).

FORBES: Mortgage Professor Helps Seniors Shop For Reverse Mortgages