Reverse Mortgage Payout Options
There are several options for receiving payout from a reverse mortgage. You can receive fixed monthly payments for a period of time, get a lump-sum payment, open a line of credit that you can draw against, or you can receive some combination of these options. You dont have to stick with a payment option forever. You may be able to change your payment option in the future for a fee. Lets go ahead and talk about your options.
Your first option is periodic payment plans. With periodic payment plans, lenders issue regular payments directly to you. Depending on the type of plan agreed upon between you and the mortgage lender, the periodic payments can extend all the way until you passed away or until you decide to move from or sell your home. You also have the choice to apply for a fixed plan, wherein the lender makes periodic payments for a fixed duration. In most cases, mortgage lenders will charge a monthly fee in exchange for the transaction costs. The amount of money you get will depend on the agreements between the mortgage lender and you.
Second option is lump sum payments one of the easiest forms of payment for reverse mortgages is the lump sum payment. Mortgage lenders pay the entire loan balance at one time. While lump sum payments result in fast cash, you should plan carefully on how to use the money. Fast cash is not often the best solution to financial problems, because you can end up piling on debt rather than paying it off. Some of the factors that affect the final sum given to you are your age, the value of the property, and the costs and reverse mortgage interest rates stipulated in the deal.
The third option is the line of credit plans, Line of credit plans are a payment type wherein lenders pay a certain amount of money to a line of credit that belongs to you. If you want to take advantage of a reverse loan, yet unsure of how to spend the money, reverse mortgage line of credit plans may be an ideal payment option. Some mortgage lenders can make periodic payments to a line of credit, allowing you to save the proceeds of their reverse mortgages.
The fourth option is combination plans, when planning your reverse mortgage, be sure to consider combination plans. Combination plans allows you a flexible system to make your own personal plans. You can get a certain amount in lump sum and ask the lender to make periodic payments from then on. Be sure to explore all of the options available to you, so you can make the best decisions regarding your reverse mortgages.
Now lets assess how much cash you get? The amount you can borrow depends on a number of factors that includes your age, the current reverse mortgage interest rates interest, the value of your property and in the case of the FHA insured HECM program (Home Equity Conversion Mortgage), and the FHA loan limit will be taken into consideration. This will come into play on homes that exceed this limit. The FHA lending limit nationally as of February 24, 2009 is 150% X the Freddie Mac lending limit which equals the FHA lending limit of $625,500. This limit will only be good until the end of 2009.
For FREE reverse mortgage counseling, and give us a call. Were more than happy to answer any questions that you may have. Or if youd like to find out how money you qualify for and if youre eligible, feel free to give us a call at (800)630-0650.
Golden Years Mortgage Solutions
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Tim Jacobs @ Golden Years Mortgage Solutions www.GoldenYearsMortgageSolutions.com (800)630-0650 firstname.lastname@example.org Golden Years Mortgage Solutions is a reverse mortgage approved FHA Lender. Weve helped thousands of senior homeowners solve their financial problems. Our agents and brokers collectively have over 60 years of experience in Reverse Mortgage Loans and general financial services, including managers who are industry pioneers with more than 12 years of reverse mortgage experience. Our dedication to providing financial solutions for seniors is evidenced by the number of referrals that come from our existing clients
by: Golden Years Mortgage Solutions