Tenure Payments for Reverse Mortgages

The tenure option allows individuals to access reverse mortgage proceeds in equal monthly payments for as long as they occupy the home as their primary residence. Its strength lies in its stability and its ability to supplement retirement income. The monthly payments stop when the borrower moves out of the home for longer than twelve months or passes away.

Nearly all banks today require the monthly payments to be direct deposited into a checking or savings account of the borrower’s choosing. This makes the payments more dependable and easier to administer. As with all reverse mortgages, the money is not subject to income tax and should not affect social security benefits.

Individuals may not want to consider tenure payments if they have immediate cash needs rather than long-term supplemental needs. It is suggested that borrowers investigate the modified tenure payment option if a combination of needs exist.

To review the amount of tenure payments available for you or a loved one, run their no-cost FROG report. FROG reports are free to all US citizens aged 62 years or greater and their immediate family members.

For more information on reverse mortgage options call 866-508-HECM.