You choose how to receive your funds, either as a lump sum, line of credit, monthly advances or any combination of these.
With the flexible payment option, you decide how much or how little to pay each month toward principal and interest. Or you can choose to make no monthly loan payment at all.¹
With no pre-defined loan maturity date, you can pay down the loan at any time, or defer repayment.
The amount that is available generally depends on four factors: your age, the current interest rate, the appraised value of the home, and government-imposed lending limits.
A reverse mortgage has certain advantages over other types of home equity-based loans. Since a HECM reverse mortgage is FHA-insured,* if the loan balance ever exceeds the value of your home you and your heirs are not responsible to pay the excess. As long as you satisfy your loan obligations, which include maintaining your home, paying your real estate taxes, and property insurance.
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I just so happen to have a reverse mortgage. The best thing I ever did in my life.
You get to stay in the house and that's a really good thing. Especially since you still own the house.¹
It's a mortgage, or it's a line of credit, but with flexibility. I haven't heard yet any reason why I shouldn't pick this product.
¹As with any mortgage, borrower must meet their loan obligations, keeping current with property taxes, homeowners insurance, and maintenance.
*This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.