Reverse Mortgage Payment Plan Options – What Options Do I Have With A Reverse Mortgage?
In recent years the most popular payment plan option for a reverse mortgage has been to take the lump sum payment at closing. However, there are numerous ways a reverse mortgage applicant can take their money. It’s important to do what’s right for YOU given your financial objectives. The different ways are as follow:
Lump Sum payment
– You have the option to take 1 lump sum payment at closing.
Line Of Credit
– You can leave all of your money or a portion of your money in a line of credit to use when and how you see fit. The nice thing about a line of credit is that your available credit grows based on your note rate plus 1.25%. The line of credit is also guaranteed to never be cut down or shut down for as long as you live or for as long as you live in your home.
You can also receive fixed monthly payments for as long as you live or for as long as you live in your home.
-You’ll also have the option of selecting a monthly payment that’s lower than your standard tenure payment, but will also have a line of credit for you to use at a later date.
– Another reverse mortgage payment plan option is one that allows you to choose a set length of time or dollar amount for your monthly payment. Note, if you select an option that allows for a larger monthly payment than your allotted tenure payment, then it may not continue until you pass away.
–You have the option to receive a payment monthly for a fixed period of time and for a fixed dollar amount and a line of credit for as long as you remain in your home.
Partial Lump Sum
–You will also have the option of taking just part of your benefit as a lump sum payment. The remaining monies are distributed using one of the other aforementioned payment plan options.
In terms of the payment plan options available for a reverse mortgage, the program is extremely malleable and can be customized to suit your needs based on your financial objectives.
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