Depending on the reverse mortgage product selected, you can receive payments in the following ways:
• Lump Sum – the entire amount in a single payment3
• Tenure – equal monthly payments as long as at least one borrower continues to occupy the property as a principal residence
• Term – equal monthly payments for a fixed period of time
• Line of Credit – a credit line that you can draw upon as you need funds3
You can also elect to receive payment using a combination of the above methods. For example, you can choose a combination of an up-front lump sum for immediate needs and a line of credit that can be drawn upon at a later date when additional needs arise.
Determining how much equity you can access
The amount of equity you can borrow is determined primarily by the age of the youngest homeowner, your home's appraised value as determined by the lender and the current interest rate. The older you are, the larger the percentage of your home's equity that can be accessed.