With a structured settlement buyout, the easiest way to think about it is that it works opposite of a mortgage. With a mortgage, you borrow a large amount of money up front and then pay it off in smaller payments over the years. You always end up paying more than what you originally borrowed because of interest.
With a structured settlement buyout, the process is the reverse of a mortgage. You will no longer receive the small monthly payment because you are giving up those monthly amounts for a large lump sum. A discount rate takes the place of the interest, and the buyer wants that rate as high as possible, while the seller wants it low.
Should You Sell?
Whether or not a consumer should go through with a structured settlement buyout is up for debate. You will always get different answers from different people. The one thing to keep in mind is the decision should never be made rashly.
You must decide if the benefits of a buyout exceed the disadvantages. You must ask yourself if receiving a large lump sum will work with your long-term goals and whether it makes sense for you.
Considering the Value of Money
Always consider the value of money before making your decision. With a buyout, the lump sum offer will be less than if you continue accepting monthly payments. What you need to figure out is how much less. The formula used in determining the value of money is complex. Your best choice is to talk things over with a financial advisor for a structured settlement buyout to determine if it’s a fair offer.
We can help you get more, please visit our site to know more about us at We Pay More Funding LLC.
