Lump Sum, Monthly or Tenure Payments!
You may feel like a lottery winner when you get to chose how to receive your Washington reverse mortgage funds!
I will explain 3 options available so as you read these think about which would best fit your situation.
1. Tenure Option.
If you like the idea of having a stable, steady monthly check deposited in your bank account then the monthly tenure plan may be best for you. The advantage of this plan is that no matter how long you live as long as you stay in your home the monthly payments on your Washington reverse mortgage keeps coming. It is guaranteed by the Federal Government so you have nothing to worry about. I think this is a great option for people who are not used to or do not want to manage a large lump sum of money.
2. Term Option.
The Term plan is like the Tenure plan except the Term plan is for a specified length of time like 10 years. You can get more money this way per month but if you live beyond the Term it does stop. I don't see very may people use their Washington reverse mortgage loan this way and I don't think it is a very good idea because you never know how long you will live.
3. Lump Sum Option.
Choosing the lump sum means you get all of the money that is available all upfront in one big check. This is a good idea if you have a plan for that lump sum of money like buy a vacation home or a rental property or some other use that requires a large sum of money all at once. I don't think it makes any sense to take a lump sum and then put the money you have borrowed into a bank account because you are now having interest charged against your equity in your home and probably earning less than that rate on the money you put in the bank. I do think that you should take a small lump sum when your Washington reverse mortgage closes so you can do something fun or pay off some other bills or fix the house, but don't borrow the money and then try to invest it for a better return.
More Washington Reverse Mortgage Information:
Washington Reverse Mortgage Examples | Reverse Mortgage Creditline Option | Single Senior Women and the Reverse Mortgage | Lump Sum, Monthly or Tenure Payments | Combination Payout to You