Borrower can draw up to a maximum amount at the times and in the amounts of the borrower's choosing. A lump sum of cash distributed to borrower at closing. Any combination of the above options. Your local Senior Loan Advisor will be happy to provide you with a Good Faith Estimate of Closing Costs when they meet with you. The interest rate charged varies depending on the reverse mortgage program selected by borrower.
All programs offer adjustable rates, and have lifetime caps on the maximum allowable rate.
Please call your local Senior Loan Advisor for a quote on the current rates. Proceeds from a reverse mortgage are considered to be a loan, not income. Therefore, the funds received are not subject to income tax and do not affect Social Security Benefits. Borrowers receiving Medicaid or SSI may not be affected if the funds from the reverse mortgage are spent in the month they are received. As always, we recommend you consult your tax advisor for further details.