Reverse Mortgage Payment Options

With each type of reverse mortgage loan is a different set of payment options available to you.Here I have a list of loan types along with the related payment options available for a reverse annuity mortgage:

Line of Credit – Available option with HECM, Home Keeper, and Cash Account:
A reverse mortgage credit line is very similar to having a savings account.  This gives you access to the full amount of the loan.  You just have to submit a form to access a specified amount.

Lump Sum – Available option with HECM, Home Keeper, and one Cash Account:
This option is self explanatory.  You will receive the entire sum of the loan in one payment.  This leaves the responsibility of budgeting your finances for as long as you need to live in your home.

Combination – Available with HECM and Home Keeper:
With this option you are able to designate amount to take as a lump sum payment or a line of credit or both and still designate a payment amount to be doled out in monthly payments to you.  This is a very versatile option and has many ways to combine the different types of payments.

Tenure – Available with HECM and Home Keeper:
This gives you steady monthly checks.  The payments continue no matter how long you stay in your home or how long you live. The negative of this option is that is doesn’t allow for sudden large expenses or adjusts for inflation.

Term – Available with HECM and Home Keeper:
This gives your reverse mortgage a definitive number of months.  You receive a monthly payment but the length of the loan will be determined by you.