WHICH OPTION DO I CHOOSE?
Once you’ve learned that you qualify for a reverse mortgage and have started working with a lender, you’ll be faced with an important decision: which payment option you’d like. This choice can depend highly on how you are planning on using the funds from your reverse mortgage, or the strategy you’re trying to use over time by using your home equity. Choose the right payment option for you and you can maximize the benefits of the loan for your situation.
YOUR RIGHT TO CANCEL
With most reverse mortgages, you have at least three business days after closing to cancel the deal for any reason, without penalty. This is known as your right of “rescission.” To cancel, you must notify the lender in writing. Send your letter by certified mail, and ask for a return receipt. That will let you document what the lender got, and when. Keep copies of all of your correspondence and any enclosures. After you cancel, the lender has 20 days to return any money you’ve paid for the financing.