paying reverse mortgage

Guest 0.10 Dollars($)

hii though in reverse mort one need not pay instalments what if a customer takes a lumsom amount and wants to repay some portion of it every month?how does the principal outstanding and rate of interest effect at any given point of time? pls clarify

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi praveen,

Welcome to this forum.

I think instead of reverse mortgage, you can take a fully amortized mortgage. You can get lumsome money by taking an amortized mortgage and pay it on a monthly basis.

You can also get the money at a time on reverse mortgage but it may not be possible to pay it on a monthly basis. The money what you want to pay the lender, you can save it in a high interest bank account and pay it back when the reverse mortgage loan term will end.

Thanks,
Larry

jenkin7 · Joined: 04 Jun 2007 Posts: 939 140.80 Dollars($)

Hello Praveen,

I think Larry has offered a better option.

Since there is no need for you to make monthly payments for the reverse mortgage, you may deposit that amount in a bank account or you may also invest that in the market to get good returns. You can pay the lender when you sell off the property or move out of that permanently.

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