Getting Paid with a Reverse Mortgage

When you borrow a reverse mortgage you have several options for receiving the money. A reverse mortgage counselor can help determine the best way to receive funds.

Lump Sum Payment

You may want all the money borrowed with a reverse loan upfront. Getting all of it at once may be a good option if you are experienced with handling large sums of money. You can use the loan for any purpose.You can even sell your home and use your Home Equity Conversion Mortgage (HECM) to purchase another house as long as it is going to be your principal residence.

Reverse Mortgage Installments

If you tend to have financial problems and don’t keep careful track of your spending, a lump sum payment might not be such a great idea. You can choose to receive the money with regular installment payments. Those installments could be set up so that you receive money for as long as you live in your home. This is called tenure payments.

Regular payments can also be set up to last for a specific term. During that period of time you could receive regular monthly payments. Once that term ends you wouldn’t be liable for repaying the money until you move or die.

Get a Line of Credit

While you may need money now to supplement your income, it may not be necessary to take all the cash you are eligible to receive. A line of credit can allow you to access the money when you need it. There may be a maximum amount you can withdraw at any time, but you can choose when you get paid.

To get an idea of how much money you might qualify to borrow with a reverse home mortgage, begin searching for loan quotes here.

This entry was posted on Monday, May 3rd, 2010 at 8:35 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.