How Reverse Mortgage payments are received?

With a reverse mortgage, you borrow against the value of your home, and receive loan proceeds according to the payment plan that you select. As a borrower, you are permitted to change payment plans at any time after origination. You may change payment plans as many times as you wish.

Reverse mortgage associated payment plans:

• Take the money as a line of credit
• Take a lump sum payment of the amount borrowed
• Receive the loan amount in equal monthly payments
  

Paying Back a reverse mortgage

No monthly payments are due on a reverse mortgage while it is outstanding. The loan is repaid when you cease to occupy your home as a principal residence, whether you (the last remaining spouse, in cases of couples) pass away, sell the home, or permanently move out.

The amount owed can never exceed the value of your home. Furthermore, if the home is sold and the sales proceeds exceed the amount owed on the reverse mortgage, the excess money goes to you or your estate.