- What Is a Reverse Mortgage?
- What's the Difference between a Reverse Mortgage and a Home Equity Loan?
- Who is Eligible for a Reverse Mortgage?
- How Much Can I Borrow?
- What Fees Are Associated with a Reverse Mortgage?
- Are There Different Types of Reverse Mortgages?
- How Do I Access the Money?
- When Is Repayment Due on a Reverse Mortgage?
- What Things Should I Consider?
- What Are the Tax Consequences of a Reverse Mortgage?
How Do I Access the Money?
Once the reverse mortgage is in place, there are several different options to tap into the money:
- A lump-sum payment
- A line of credit from which the funds can be drawn upon as needed
- A fixed monthly cash advance, which is received by the borrower over a certain number of years
- A fixed monthly cash advance, which is received by the borrower as long as the borrower occupies the home
- A combination of a line of credit along with a monthly cash advance for a fixed period of time selected by the borrower
- A combination of a line of credit along with a monthly cash advance for as long as the borrower remains in the home
- A combination of a lump-sum payment, a line of credit, and a monthly income
You can change options if your circumstances should change, providing the outstanding mortgage balance is less than the original principal limit.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. ("CFS"), a Registered Broker-dealer (Member FINRA/SIPC) and SEC-registered Investment Advisor. Products offered through CFS: are not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including possible loss of principal. Investment Representatives are registered through CFS. General Electric Credit Union has contracted with CFS to make non-deposit investment products and services available to credit union members.