Reverse Mortgage Payment Options - What You Should Know

DDA Mortgage • May 25, 2022

Your HECM lets you choose among several payment options. Which one is best depends on what you want to do with your home equity. For example, if you plan to move within the next five years and want to use some of your loan proceeds for improvements, a term option may be best. If you think you will live in your home as long as possible, consider a tenure or line of credit option. Below are all your options. To find out what option might be best for you, talk to one of our reverse mortgage advisors.


A Term Option

A term option allows you to receive fixed monthly cash advances for a specific time. These payments allow you to increase your monthly income while protecting your family and other assets from changes in the housing market.


A Tenure Option

A tenure option allows you to receive fixed monthly cash advances for as long as you live in your home. These payments are determined by several factors. Talk to a Reverse Mortgage Advisor to learn more about what you can qualify for, 727-784-5555.


A Line Of Credit

This lets you draw down the loan proceeds at any time, in amounts you choose, until you have used up the line of credit. This option limits the amount of interest imposed on your loan because you owe interest on the credit that you are using.


Other options are available and lenders are always working on new product offerings.


If you would like to speak to a Reverse Mortgage advisor, give us a call (727) 784-5555. Or use our form below to ask a question.

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Wade Pfau: how market volatility could renew reverse mortgage discussion

By Didier Malagies • April 15, 2025
Wade Pfau, a leading voice in retirement income planning, has long advocated for the strategic use of reverse mortgages —and current market volatility could reignite interest in this often misunderstood tool. 🔁 Why Market Volatility Renews Reverse Mortgage Talks In times of market downturn, retirees face sequence of returns risk , meaning early losses can severely impact the longevity of their portfolio. Pfau suggests that reverse mortgages , particularly Home Equity Conversion Mortgages (HECMs) , can act as a buffer asset to avoid selling investments at a loss. Here's how: During market dips , retirees can pull funds from a reverse mortgage line of credit instead of their investment accounts. This gives their portfolios time to recover before resuming withdrawals. Result : More sustainable income and potentially greater long-term financial security. 🧠 Shift in Strategy: Not Just a Last Resort Pfau argues that reverse mortgages should be considered early in retirement planning , not just as a last-ditch effort: Opening a HECM line of credit early can grow over time due to the compounding credit line. Provides flexibility and tax-efficient access to funds. Helps retirees coordinate income sources between portfolio withdrawals, Social Security, and home equity. 👓 Changing Advisor Perspectives Financial advisors—previously skeptical—are beginning to see reverse mortgages in a new light: Volatile markets have prompted a more open-minded view among planners. More are incorporating reverse mortgages into holistic retirement income strategies . Bottom line : Market volatility doesn’t just threaten retirement—it also opens the door to rethinking traditional strategies . As Pfau puts it, home equity is too significant a resource to overlook, and when used wisely, reverse mortgages can enhance retirement resilience

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By Didier Malagies • April 14, 2025
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By Didier Malagies • April 10, 2025
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