Receiving Your Reverse Mortgage Money, Part III
....................................................................................................................................................................................................
There are a number of options that are open to reverse mortgage borrowers and indeed four of those options have already been covered in previous articles. The first article on receiving your reverse mortgage loan money covered options such as receiving it in lump sum form or receiving it in monthly payments for life. The second article mentioned a slight alternative to the latter where the term was fixed instead of for life and then mentioned the most popular option, a line of credit. Lines of credit are actually illegal in Texas (the second most populous state), which makes it interesting that the line of credit would be the majority choice, but there are also two more options yet to be discussed. These options are the least popular in terms of usage, but at the same time are readily available to anyone that wants them.

Option #5 – Line of Credit Combined with Monthly Payments

Lines of credit are the most popular option, but for some people they don’t really want them to be everything. As good as lines of credit are, there are going to be circumstances where it might not be a good idea to have all of your money in a line of credit. A good example of this would be a person with a chronic condition, needing to go to the emergency room. In those cases, it is always good to have some of the money in your bank account rather than in the line of credit so you can access it immediately rather than having to wait until morning.

The solution that a lot of people come to in dealing with this is to combine the line of credit option with the monthly payment option. This means that you can earmark part of the loan sum to go towards monthly payments and leave the rest of it in a line of credit. This allows you to enjoy the best of both worlds; the regularity of monthly payments and the convenience of a line of credit.

Option #6 – Total Combination

For some people, none of the five options already discussed fits! While each of the different possibilities for money distribution has been covered by one of the five options already discussed, some people want to make sure that they keep all of their options open. They want their reverse mortgage loan split up into parts that are delivered to them in a lump sum, then a part that is delivered monthly and finally a part that is held in reserve for them to access whenever they want.

This is a rather interesting way of doing things, but because of the agreeable nature of reverse mortgage lenders, it is usually one that is possible. You can combine the payment methods in any way you want in order to get the reverse mortgage loan delivered to you in the way that suits you best. This is the least popular option, but it is the one that results in the highest customer satisfaction.

Learn more about Reverse Mortgages >>