5 Ways to Receive Payments from a Reverse Mortgage

If you are looking at getting a reverse mortgage, there are a number of different payment methods that you will have to consider. Here are some of the ways that you can receive payments from a reverse mortgage.

1. Tenure

Tenure is a method of payment that will provide you with regular monthly payments for as long as one spouse is alive and still living in the property that you included in the loan.

2. Term

With the term method, you will be able to select a certain number of months that you would like to receive equal payments. 

3. Line of Credit

Another option that you have is to set up a line of credit with your reverse mortgage lender. With this scenario, you are free to take money out of the line of credit whenever you want. You will get to keep taking money out until you have reached the maximum amount that you can borrow against your house.

4. Modified Tenure

The modified tenure arrangement combines receiving a small monthly payment for as long as you live in your home as well as a line of credit.

5. Modified Term

With this arrangement, you will get to choose how long you want to receive payments and you will get access to a line of credit as well.

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