How Do You Get Paid With A Reverse Mortgage

Once you borrow against the equity in your home via a reverse mortgage, you will receive payments rather than making them and you have a number of options including monthly payments (as long as you still own the home), a lump sum payment, a periodic advance via a line of credit or you may mix and match some variation of all three options. This gives a reverse mortgage buyer some flexibility in how they get paid.

GET PAID WITH YOUR REVERSE MORTGAGE! Start Here By Comparing Your Rates!

Of course, once you qualify, the amount of the loan available will depend on a number things such the kind of program selected and how much equity will remain after paying off current mortgages. Your age may also be a factor in you and when you get paid on your reverse mortgage.

Let’s say that you are 65 and own your home outright and it is worth 500K. A reputable bank will end up having closing costs of about 20K, but with a lump sum payment of nearly 130K available, at an interest rate of about 9% annually. So, this kind of return will affect how you decide to get paid on your reverse mortgage as a loan calculator might come up with a different outcome if you were to decide to get paid in installments, which you can of course do.

Of course, as a practical matter, you may also choose how you physically get paid, such as by receiving a traditional check or having some sort of direct deposit arrangement. 

How You Get Paid:

Lump Sum Payments | Line Of Credit | Combination Payouts

Gina Wilson

Another post from Gina Wilson – Credit & Loans Specialist Blogger.