• Question
  • If I decide to get a Reverse Mortgage, may I get $4000 a month until I decide I don't want anymore.

    Asked by a 90 year old woman from Mobile, AL on 1/16/2013

    If I decide to get a Reverse Mortgage, may I get $4000 a month until I decide I don't want anymore.

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  • Categories: Loan Amount and Type, Reverse Mortgages

Answers

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  • Editorial 

    Editorial 
    NewRetirement

    San Francisco, CA

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  • When you secure a Reverse Mortgage you may select how you would like to receive your money. Your options are:
    -- Cash (You will pay interest on the full loan amount.)
    -- A line of credit (You pay interest only on the money you withdraw.)
    -- Annualized monthly payments (You pay interest on the amount you are sent each month.)

    The exact dollar amount of your annualized payments will depend on the value of your home and your age. These payments will continue until you die or otherwise terminate the loan. However, the loan will become due at that point and all money you have borrowed will need to be paid back. Most Reverse Mortgage borrowers pay back the loan with the sale of the home.

    However, Reverse Mortgages are unique in that no matter how much money you end up borrowing from the lender, you will never actually owe more than your home's value at the time the loan is repaid, even if the Reverse Mortgage lenders have paid you more money than the value of the home.

    I hope this information is useful.

    Feel free to call us toll free at: 866 441 0246 with any questions you might have. Or you can find a Reverse Mortgage lender online at https://www.newretirement.com/reverse-mortgage-marketplace.aspx

    We wish you all the best.
    http://www.NewRetirement.com

  • Login to rate this answer:   Answered on 1/20/2013
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  • No. With the 'standard" Reverse Mortgage program (the current interest rate of 2.955%), you can receive $4,000.00 per month for approximately 4 years. It's called a "term" monthly payment when you decide how much you want per month, and the payments will eventually stop. However, if you selected the "tenure" monthly payment option, you'd receive a check for as long as your home is your primary residence. With you, the amount you'd receive is $1,383.32 per month.

  • Login to rate this answer:   Answered on 1/25/2013
**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.