There Are Six Different Reverse Mortgage Payment Options for Receipt of Reverse Mortgage Funds
1. Lump Sum – Total of all available reverse mortgage funds are disbursed at closing.
2. Tenure Payments—Structured payout that provides monthly payments to the borrower as long as the property remains their principal residence.
3. Line-Of-Credit —Draws upon a credit-line amount. Borrower may draw reverse mortgage funds at different times and in different amounts, at the borrower’s choosing.
4. Term —Structured payout that provides monthly payments for a set number of years.
5. Modified Term – Combination of line of credit with the monthly payment for a set term.
6. Modified Tenure—Combination of line of credit with monthly payments as long as one borrower remains in the home.