Ways of receiving money from reverse mortgage

Sam

Money can be received from reverse mortgages in usually four ways:

Monthly income:
This is usually the way reverse mortgages are availed. It gives the feel of an income every month even after retirement from work. You can plan out your expenses and savings based on this fixed amount that you get. But you will get this only as long as you stay in the house.
Lump sum:
This can come in handy if you wish to make a huge purchase or make an investment. But once it is spent no more can be availed.
Line of credit:
You draw the amount on a line of credit that is you can draw as and when required. Expenses come like uncalled visitors and you have to cater to them. Then you can write a check or draw on a credit card for the same.
A combination of all the above: You can change the way you receive the money by paying a nominal fee or nothing at all depending on the policy of the lender. You can go for a line of credit for a fixed period and then go for a monthly amount or vice versa.

It depends on what kind of a spender are you and how well you can manage your finances. You can choose among the above ways. You are allowed to switch ways as well, so you can always try out all of them. The choice is all yours.

colin · Posted: Fri Jul 28, 2006 2:01 pm Post subject:

You can also choose to get the money from a reverse mortgage for a fixed period of months.

Guest

Are there specific areas to use the money that I get from a reverse mortgage? Thanks in advance.

colin · Posted: Fri Jul 28, 2006 2:17 pm Post subject:

No, there are no specific areas fixed to use the money received in a reverse mortgage. You are free to utilize the money wherever you like.

You can spend the money for your daily living expenses, home improvements, healthcare, paying off outstanding debts etc.

Reverse mortgage provides you a financial security in your retirement years.

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