Options For Receiving Your Reverse Mortgage Money

5/29/2007

posted by N. Sioris

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Seniors considering Reverse Mortgages, have several options to choose from when deciding how they would like to receive their money. The most popular Reverse Mortgage is the Home Equity Conversion Mortgage, commonly referred to as the HECM. This loan is federally insured by FHA through the department of Housing and Urban Development - HUD.

If your Reverse Mortgage is a HECM, you can receive your Reverse Mortgage Money in the following ways:

TENURE – You receive equal monthly payments for as long as you remain in your home, and as long as the home continues to be your primary residence. If there are two owners on title, then the payments continue until the last borrower leaves the home permanently.

TERM – Equal monthly payments for a fixed number of months selected by the borrower.

LINE OF CREDIT – This is an amount of money that is set aside to be used periodically in whatever amounts and intervals the borrower chooses. It works the same way that a Home Equity Line of Credit does, but without monthly payments required to the lender.

MODIFIED TENURE or MODIFIED TERM – These are a combination of the above options, chosen by the borrower at the time the loan is established.

As Reverse Mortgages continue to become more popular each year, there will be alternative Reverse Mortgage loans that will enter the market place and will offer a variety of other choices for payouts as well as variations on the Reverse Mortgage product itself. Comparisons of these options for your Reverse Mortgage Money are just a click away.