Harvard Mortgage


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Reverse Mortgage Payment Options:

Payment Definitions	Potential Positives	Potential Negatives
Line of Credit You access funds at your discretion	1) Flexibility-You can access funds as needed. 2) Growth feature-The unused balance grows. This does NOT mean you are earning interest. The growth factor is based upon the appreciation of your home over the past 12 months and you are one year older.	1) The funds in the line of credit can be exhausted. To gain access to additional funds you may consider refinancing to a new Reverse Mortgage. 2) To access funds, you must submit a written request to the loan servicer managing your account.
Term Payment You receive fixed monthly payments for a set period of time.	1) Funds can be automatically deposited into your bank account. 2) You receive larger monthly advances compared to the Tenure payment option.	1) The amount of funds you receive each month is fixed, so if you need additional funds, you will have to request a payment plan change. 2) Monthly advances are not indexed for inflation.
Tenure You receive fixed monthly payments for as long as you live in the home	1) The monthly advances continue for as long as you live in your home, even if the total amount you receive exceeds the value of your home. Despite this, you will never owe more than what the home is worth.	1) The amount of funds you receive each month is fixed, so if you need additional funds, you will have to request a payment plan change. 2) Monthly advances are not indexed for inflation.
Modified Term Fixed monthly payments for a set period of time, plus access to line of credit	1) Provides two sources of available funds. 2) Combines Term and Line of Credit Advantages.	1) You receive smaller monthly payments because a portion of your equity has been set aside in the line of credit.
Modified Tenure Fixed monthly payments for as long as you live in the home, plus access to line of credit	1) Provides two sources of available funds. 2) Combines Tenure and Line of Credit Advantages.	1) You receive smaller monthly payments because a portion of your equity has been set aside in the line of credit.