4 Ways To Access Your Reverse Mortgage Equity
Articles - Retirement
Reverse mortgages allow you to access your home equity four different ways. We will examine those ways so you know how to access your reverse mortgage equity.
by DavidPrulhiere


Reverse mortgages allow you to access your home equity four different ways. We will examine those ways so you know how to access your reverse mortgage equity.

1. Lump Sum - You have the option of taking all the funds available to you at one time. You can use the money for anything you want, but the most common use is paying off the existing mortgage (if you have one) on your home.

2. Monthly Payments - Payments to you that is. The two options are payments that continue for a specified amount of time or a lifetime payment. Since the lifetime payment continues for both your and your spouse's lifetime, it is the most common choice.

3. Line of Credit - In the event that you don't need the money today, or you would like to keep in in reserve for an emergency, choose this option. No interest will be charged to you if you don't take the money. It is only charged in the event you borrow it.

4. Combine Any of the Above - If you want a little of each of the above plans, you can. Mix and match is a great way to go. For example, you can take a lump sum to pay off the mortgage and specify a monthly amount to enhance your income while leaving an amount set aside that you can draw in the event you need additional money down the road, say for a repair to your home. By the way, for a small fee, you can change the plan later if you decide the plan you chose doesn't suit you, or if your needs change.

In the event you want an option other than a lump sum, know that you must take an adjustable rate mortgage (ARM). When choosing the fixed rate reverse mortgage, there is only one option - you have to take it all when you close your loan.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

Before committing to any reverse mortgage programs, make sure you get all the information. Visit our website for more reverse mortgage information. There is also a free reverse mortgage calculator to see how much money is available to you.