A reverse mortgage provides you with several options to receive your loan proceeds:

LumpSum-Green2-150x150
Lump Sum

The lump sum option will provide borrowers an immediate disbursement once the loan has closed. This option works well for immediate needs such as paying off debts, making home improvements or purchasing a new home.

Credit-Green2-150x150
Line of Credit

The line of credit provides flexibility, control and easy access to your funds. You choose how much and when you want to access your funds. In addition, the line of credit can help you grow your proceeds further with its growth rate feature. Amounts in the line of credit will grow at the loan rate for as long as you have your reverse mortgage.

Monthly-Green2-150x150
Monthly Cash Flow Payments

You can select either a term or tenure payment to schedule payments to be received for a predetermined amount and time.

Combination-Green2-150x150
Combination

You can choose a combination from any of the other options.

After the closing date, you may make changes to your options with the servicing company for a nominal fee.

Lump-Sum Dispersal

Lump SumThe reverse mortgage provides a great deal of options for homeowners to choose the proceed plan that best suits their needs. Homeowners can choose a lump-sum dispersal of all available proceeds, a line-of-credit that may be accessed anytime over the life of the loan or monthly payments that for the life of the loan or a shorter-term payment option that would limit the duration of payments while increasing the amount received for each payment.

Generally, you can take out up to 60% of your initial principal limit in the first year. However, if the amount you owe on an existing mortgage (or other required payments) is more than 60% of your initial principal limit, you can take out enough to pay off your mortgage (and any other required payments, including upfront loan fees) plus additional cash of up to 10% of your initial principal limit. This first-year withdrawal cap applies to all 3 payout options.

If you do choose not to access the maximum amount available at closing you may choose from several other options:

Line of Credit

Line of CreditA reverse mortgage line of credit has a clear-cut advantage over the traditional credit line, in that it has a growth option (growth applies to unused funds). While the cost of setup for a HECM is higher, the advantages may outweigh the costs, depending on your situation. The unused funds in your line is guaranteed to grow regardless of the general economy, interest rates, or the underlying
value of your home. If you take out a HECM at age 62 instead of 82 and leave the funds to grow instead of using them, it’s possible that the credit line could grow to be higher than the value of your home.

Tenure and Term Payment

MonthlyOpting for the tenure payment will convert available proceeds into an amount that will be paid to you each month for the life of the loan. Since the reverse mortgage is a non-recourse loan, you will continue to receive the payment regardless of home value or loan balance as long as you remain in the home and maintain the other homeowner requirements for the reverse mortgage.

In addition to the tenure payment option, a homeowner can select a term payment or payment for a fixed period of time. These payments will only continue for a specified and finite period. This option is seldom chosen because of the limited duration of payments, but may be a viable option for a homeowner that needs a specific amount of money each month that exceeds the amount available with the tenure option.

Monthly Cash Flow Payments

The monthly “tenure” option allows you to receive a monthly payout from your lender for as long as you continue to live in your home. The monthly “term” plan is a similar option, but you only receive the monthly payout for a fixed number of years. The payouts will be larger than under the “tenure” option, and you get to choose how many years you would like.

Combination

A combination of the three ways can be used to customize for your needs or wants. The reverse mortgage is a dynamic and customizable product that can be implemented specifically for each client’s needs.  That is why it is so important to work with a local reverse mortgage planner to ensure the product is properly explained and utilized.

Rick R. Rodriguez

Rick R. Rodriguez

Rick R. Rodriguez has been in mortgage sales and management since 2003 and has held positions as loan originator, sales manager, production manager, and branch manager. He is well-versed in all types of mortgage products, and over his career, he has been recognized as an accomplished and trusted professional.

In 2004, after completing his first reverse mortgage transaction, Rick took the steps to focus primarily on this kind of loans and become a specialist in the industry. In February 2016, he became the first person in Southern Nevada and the 117th in the nation to obtain the designation of Certified Reverse Mortgage Professional (CRMP®).

As a CRMP®, Rick has extensive experience in all available reverse mortgage products, including the Home Equity Conversion Mortgage (HECM) refinance, HECM to HECM refinance, HECM for purchase and jumbo reverse mortgage. His clients benefit from his financial qualifications, meticulousness, effective communication skills, and years of experience working with reverse mortgages. He has the proven ability to explain the reverse mortgage to help others understand the process.

Pushed by his passion for reverse mortgages and his commitment to the industry, Rick spends his time working with homeowners, realtors, healthcare professionals, and various other individuals and organizations to lay out the role reverse mortgages have in real estate and retirement planning.

“A reverse mortgage should be, at the very least, considered by every homeowner over the age of 62. The flexibility that this program offers can be life-changing as well as an effective counterpart to retirement planning. I always welcome the opportunity to speak with clients about a reverse mortgage, and to help them determine if it may be the right option to meet their financial and housing needs.”

Rick is a Las Vegas native, and he holds a BSBA in Accounting from the University of Nevada Las Vegas. After graduating college, he worked for a local Certified Public Accounting firm before moving into the mortgage industry. He enjoys spending time with his loved ones, traveling, exploring the outdoors, playing various sports, and above all helping his wife raise their family.

Jesse Brewer

Jesse A. Brewer

Jesse A. Brewer (NMLS# 473359) is a veteran professional in the industry with extensive background in reverse mortgage origination, sales management, and production center management. He currently specializes in reverse mortgage origination at Resolute Bank working directly with homeowners, real estate professionals, financial specialists and healthcare providers to inform them of this type of loan’s flexibility and practical applications—helping homeowners improve their retirement economic outlook.

Jesse began his career in 2001 with a mid-sized Boston-area bank, before moving to Las Vegas in 2006 to focus on mortgage origination. In 2008, he joined a local reverse mortgage lender, where he became, in two years, the top-producing reverse mortgage loan officer.

Jesse then moved into sales management, a role which he held for several years, before becoming vice president, national sales manager, and reverse mortgage division head running Proficio Mortgage Ventures, LLC, based in Henderson, NV. As division head, Jesse used his innate leadership and team-building expertise to propel a small sales team into a national production center in the bank’s reverse mortgage division.

Jesse is dedicated to making the industry approachable by being an active speaker, educator, and relationship builder within the banking and mortgage community. Clients compliment his ability to simplify the reverse mortgage process with solutions that lead to life-changing outcomes.

“The reverse mortgage is a powerful financial tool that should be evaluated by anyone considering retirement options. I always look forward to helping clients understand the flexibility of the program and how it can be utilized to provide for a more comfortable standard of living through retirement.”

Jesse holds a degree in Business Administration Management from Massachusetts Fitchburg State University. He enjoys sports and outdoor activities with his wife, Virginia. He played football at FSC followed by playing rugby for over a decade, that included winning a National Championship in 2010.

 

Before you go...

To receive updates from us, enter your details below and we'll send you essential information regarding the reverse mortage process.