3 Tips for Effectively Repaying Your Reverse Mortgage

There are proven ways to effectively repay your reverse mortgage, but it does take commitment. Working to pay it off early is the best plan. If you are successful in paying it off, you can leave an inheritance to your heirs without any encumbrances. Here are 3 tips to pay off your reverse mortgage:

Tip #1 - Pay Mortgage on a Bi-Weekly Basis

You can chip away at your principal balance faster by paying your reverse mortgage on a bi-weekly basis. You won't have to pay as much interest, and you can speed up the repayment process. Ask your lender about the requirements for a bi-weekly payment schedule because they may charge additional fees.

Tip #2 - Create a Frugal Budget

One of the best ways to find the money you need to make extra payments on your reverse mortgage is to create a frugal budget. Getting another job or running a full time business may be difficult at this point in your life so a good budget can help. Sticking to the tightest budget possible can provide you with a little extra money to pay off the principal balance.

Tip #3 - Stop Withdrawing on the Equity

Stop withdrawing additional funds from a home equity line of credit. Many reverse mortgages have a line of credit available for your use, but each time you withdraw more funds, it will take you that much longer to pay off the mortgage.

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