What is a Lump Sum Payment?

Lump Sum Definition

A lump sum payment is when a lender provides you with funds in a single amount, rather than as a line of credit or as a series of payments. A lump sum can make large purchases possible, and can be used to pay off large bills all at one time. Note that the only time a lump sum is available through a reverse mortgage is if you choose a fixed rate loan. With an adjustable rate loan, you can choose from a number of different disbursement methods, including a line of credit, monthly installments, and combinations of those.

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