Now that you've decided that you a reverse mortgage is right for you and your family, you still have one decision left to make; you must decide how you want to receive the proceeds from your loan. You can receive the money from your reverse mortgage in a variety of different ways. Each one has its own distinct pattern and advantages.
The first option for receiving your reverse mortgage proceeds is receiving it as one lump sum. This payment method is popular with borrowers who are using their reverse mortgage to pay for their home. Using our special program available to residents of Macomb, Oakland, and Wayne Counties, borrowers can use the proceeds to purchase their home from us.
Another option is to treat your reverse mortgage as a reverse annuity mortgage. In this instance, you will receive regular monthly payments for as long as you live in your home. The amount of the payment is determined by the value of your home, your age, and the amount owed on the home before you took out your reverse mortgage. The annuity payment plan is particularly helpful for borrowers who wish to use their mortgage to supplement their income. A payment plan that is very similar to the annuity plan allows you to receive those regular monthly payments, but to specify how long you will receive those payments.
Finally, the most popular payment plan for reverse home mortgages is the line of credit method. When this method is chosen, the borrower is approved to borrow a specific amount of money from the lender. Then at the time of his, choosing the borrower can withdraw all or a portion of the funds as they are needed.
Borrowers who are torn between one method of receiving funds from his reverse mortgage and another method don't necessarily have to choose between them. It's perfectly acceptable to use a combination of methods to withdraw the funds from your reverse mortgage. You might want to set up regular monthly payments and keep a portion of your mortgage proceeds available for withdrawal for special purchases.
With so many different payment options available to them, reverse mortgage borrowers can really use the money from the reverse mortgage for anything they want. Whether you want to purchase a home, get monthly payments to supplement your income, or draw on your mortgage to make retirement purchases, a reverse mortgage is a great way to make your home work for you.
Contact us today at GCCPropertySolutions@yahoo.com to get started and we'll walk you through the entire process step-by-step.
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