In both cases you use debt to turn what you have into what you want. When the last surviving borrower dies, sells the home, or permanently moves away. You might also have to pay it back if you fail to pay your property taxes, fail to keep up your homeowner's insurance, or let your home go to waste. But if you do, the lender may be able to make extra cash advances to cover these expenses. Just remember, reverse mortgage borrowers are still homeowners and therefore are still responsible for taxes, insurance, and upkeep.
Interest rates can change based on changes in published indexes.
And they will be lower than less adjustable rates all during the time that index rate changes don't exceed the caps on the less adjustable rates. You can never owe more than the value of the home at the time the loan is repaid. Not your income, your other assets, or your heirs. So even if you receive monthly loan advances until you are aged 115, your home declines in value between now and then, and the total of monthly advances becomes greater than your home's value - you can still never owe more than the value of your home. If you or your heirs sell your home in order to pay off the loan, the debt is generally limited by the net proceeds from the sale of your home.