Lump Sum or Monthly Payments
Getting money from a Florida Reverse Mortgage: Lump sum or monthly, or both
You've thought about the decision for quite a while and then decided to take the plunge. You are ready to sign the papers and then the loan officer asked “How do you want the money?”
How do you want the money? You've read about the options, but the money end was so far in the future you hadn't given it any thought until then. Now you really have to think about receiving payments because the reverse mortgage time is now. Let's review how money is obtained from a Florida reverse mortgage.
There are three basic ways you can receive money from a Florida reverse mortgage: line of credit, monthly payments, combination of both.
1. Monthly payments – this is the preferred method of disbursement for most holders of a reverse mortgage. You can take monthly payments in two different ways: payments for a set period or payments for as long as you remain in the house. The “as long as you remain in the house” system of disbursement is so attractive to most Florida residents that it becomes the preferred method of payment. If you live in Florida, you're probably not going to move to some other state and it's safe to say you plan to remain in your home. The payments in a set period will probably be higher than payments in a tenure payment.
2. Line of credit – People take the line of credit option because they don't need the money immediately and they don't want to raise the amount of the their liquid assets. Florida Reverse mortgage money is money you spend, not save. People who opt for this method of disbursement set up withdrawals in amounts previously determined. This option is great for people who are using the reverse mortgage to pay particular bill, like college tuition for their grandchildren.
3. Line of credit plus monthly payments – This is really two types of disbursements since there are two types of monthly payments. You can set up a line of credit with term or tenure monthly payments.
More Florida Reverse Mortgage Information:
Florida Reverse Mortgage | 4 Steps for Reverse Mortgage | Ask Yourself This... | Lump Sum or Monthly Payments | Must Do Things for a Florida Reverse Mortgage Loan | Retirement Tips | Reverse Mortgage | Feautures of a Florida Reverse Mortgage