• Question
  • Reverse Mortgage payments

    Asked by a 81 year old woman from Grass Valley, CA on 5/24/2012

    If I go with a reverse mortgage, can I borrow amounts in monthly amounts as well as larger amounts as needed? And can I borrow these amounts with a fixed percentage rate?

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  • Categories: Loan Amount and Type, Reverse Mortgages

Answers

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  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • You have 3 ways to access your Reverse Mortgage Money (or a combination of the three):

    Cash - You can receive the full amount you are eligible for in one lump sum payment.

    Monthly Payments - You can annuitize the lump sum payment into a series of monthly payments either for a present term or for the lifetime of a Reverse Mortgage. Many seniors use this option to supplement their Social Security or other retirement income.

    Line of Credit - You are allowed to borrow any amount you wish as needed up to the maximum amount you are eligible for. This enables you to keep the end cost of the loan down by only drawing what you need and leaving the rest of the Reverse Mortgage untapped.

  • Login to rate this answer:   Answered on 5/29/2012
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.