Spending Options for a Reverse Mortgage
Most current HECM reverse mortgages use an adjustable interest rate, which allows the proceeds from the reverse mortgage to be taken out in any of these four ways or a combination thereof:
1. Lump-Sum Payment: Take out a large amount initially, though not necessarily the full amount available.
Pfau, Wade D. PhD, "Spending Options for a Reverse Mortgage" (2016). Faculty Publications. 436.