Dispensing Payments

Choices for Reverse Mortgage Payments:

  • Lump-Sum
  • Equal Monthly disbursements
  • Equal Payments over a preset period of time
  • Credit Line with flexible payments and flexible times
  • A combination of fixed monthly payments and a line of credit
  • Any combination of the above

Finally, the amount of the Reverse Mortgage Payment depends on age, interest rates, and the market value of your home. There is a limit on Reverse Mortgage Payments.  The limit increases each year and it presently is $765,600 for 2020.

The largest amounts are paid to older homeowners living in homes worth a little more than three-quarters of a million dollars.  There is a government-backed program called the Home Equity Conversion Mortgage (HECM), and many Banks and Institutions use that federally insured program.

Determine Payments

For the average person, it may not make sense how a payment method would affect the total payout.  However, it really does and getting paid in one lump sum vs. monthly payments will affect the bottom line.

Receiving the lump sum could leave money on the table because both the fixed monthly payment and the line of credit options could pay out more over time if the home value increases.


The below list reveals some of the costs associated with getting a Reverse Mortgage.  The following outlines the costs that become folded into the final amount of the Reverse Mortgage:

  • Interest on the loan
  • Origination fee
  • Inspection fee
  • Appraisal fees
  • Repair fee
  • Land Survey fee
  • Closing fee
  • Insurance fee

Will a Reverse Mortgage work for you?

Reverse Mortgages are not for every homeowner. However, it is a good financial investment for many who have learned the pros and cons of the program.

We specialize in helping homeowners learn the facts about Reverse Mortgages and we take pride in helping them.   Give us a call or fill out the form below to have one of our experts give you a call to discuss the possibilities.

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