Financial Answer Center
Reverse Mortgage
- What Is a Reverse Mortgage?
- What's the Difference between a Reverse Mortgage and a Home Equity Loan?
- Who is Eligible for a Reverse Mortgage?
- How Much Can I Borrow?
- What Fees Are Associated with a Reverse Mortgage?
- Are There Different Types of Reverse Mortgages?
- How Do I Access the Money?
- When Is Repayment Due on a Reverse Mortgage?
- What Things Should I Consider?
- What Are the Tax Consequences of a Reverse Mortgage?
How Do I Access the Money?
Once the reverse mortgage is in place, there are several different options to tap into the money:
- A lump-sum payment
- A line of credit from which the funds can be drawn upon as needed
- A fixed monthly cash advance, which is received by the borrower over a certain number of years
- A fixed monthly cash advance, which is received by the borrower as long as the borrower occupies the home
- A combination of a line of credit along with a monthly cash advance for a fixed period of time selected by the borrower
- A combination of a line of credit along with a monthly cash advance for as long as the borrower remains in the home
- A combination of a lump-sum payment, a line of credit, and a monthly income
You can change options if your circumstances should change, providing the outstanding mortgage balance is less than the original principal limit.
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