How are reverse mortgage funds distributed

I have received many questions from borrowers that are not clear on the details of a reverse mortgage. In today’s discussion I am going to focus on how approved loans are distributed.

You have five options:

Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
Term - equal monthly payments for a fixed period of months selected.
Line of Credit - unscheduled payments or in installments, at times and in amounts of borrower’s choosing until the line of credit is exhausted.
Modified Tenure - combination of line of credit with monthly payments for as long as the borrower remains in the home.
Modified Term - combination of line of credit with monthly payments for a fixed period of months selected by the borrower.

Written by charles dennis on June 4th, 2008 with comments disabled.
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