16 Distribution of Funds from a Reverse Mortgage

There are several ways to receive the proceeds from a reverse mortgage.

·       Lump sum – a lump sum of all available cash at closing.  No more funds will be available after the date of closing.  This is most often the used program when there are liens or other debts to be paid off thru the loan closing.

·       Tenure – a pre-determined schedule of equal monthly payments as long as the homeowner lives in the home.

·       Term – a pre-determined equal monthly payment for a fixed number of years.

·       Line of Credit – an LOC from which the homeowner may draw any amount at any time until the line of credit is exhausted.

·       Any combination of those distribution options listed above

·       Start here to calculate the possible proceeds you may be eligible to receive: 

Reverse Mortgage Calculator

·       Reverse mortgage calculators have two parts. In Step 1, basic information like property value will be used to evaluate whether or not you are eligible for a reverse mortgage.

·       In Step 2, you can enter additional property information to determine how much you may be eligible for.

Of course, resources such as the Reverse Mortgage Calculator are designed to give the potential consumer a rough idea of what he or she may expect to gain from a HECM mortgage.  It is always advisable to follow up the use of this calculator with a face-to-face meeting with a HECM mortgage professional of your choice.  They will be in a better position to consider all of your personal and financial factors that may influence the final proceeds.