So even when the home is sold and the Reverse Mortgage is paid off, the home owner still owns the annuity and the payments will continue. This method is best for people who want to top up an existing monthly income with a bit extra. The Annuity purchase can be relatively expensive because of the interest. . Another type of Reverse Mortgage is the Line of Credit Reverse Mortgage. This plan allows you to take out only the amount of money required at any given time.
Interest is calculated on the total accumulated amount withdrawn.