How to make your reverse mortgage work for you

by Darren Moffatt on July 9, 2008

  • Sumo

There are a couple of simple things you can do to ensure that your reverse mortgage loan is working for you as efficiently as possible:

  • Draw the funds out slowly, or gradually over time. This will reduce the ultimate interest bill. With some lenders you can do this via monthly instalments paid directly into your bank account
  • Make payments to reduce the loan balance or interest bill, if you can afford it
  • Make sure you have enough ‘cash reserve’ available for future use. If you have not established sufficient cash reserve (undrawn funds) at the outset, you may have to pay ‘top-up fees’ to the bank if you run out of money and need to go back for more. Why pay more bank fees than you need to?
  • Avoid lenders with regular, or monthly fees

To check your reverse mortgage go here.

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