How to minimise interest cost on a Reverse Mortgage loan

By Darren Moffatt

April 4

3 comments


reverse mortgage interest

 

[transcript]

Hi, I’m Andrew Cate.

I’m the NSW Reverse Mortgage broker with Seniors First.

Today’s lesson is: ‘how to minimise interest cost on a Reverse Mortgage loan.”

I’ve helped over 400 seniors obtain a reverse mortgage.

And if there’s ONE topic that people always want to talk about, it’s ‘compounding interest’.

To recap: Reverse Mortgage borrowers are not required to make regular repayments.

The debt, plus any accumulated interest and fees is paid when the property is sold.

What does this mean? Well the monthly interest charge will be ‘capitalised’ each month – added onto the loan – so that over time, you will pay ‘interest on interest’.

Now this ‘compounding interest effect’ may be especially important, if: – you’re drawing a large lump sum. – you want to preserve home equity for children. – you need to pay aged care costs in the future.

SOLUTION: I’ll now share THREE ways you can reduce the interest cost on a Reverse Mortgage loan.

I’ve also got a special FREE offer for you…

Follow the instructions on screen to claim it now. Thanks for watching & bye for now.

  • Hi Everyone

    I was extremely stressed about an extraordinary strata levy I had to find the money for. I would like to thank and recommend Andrew Cate from Seniors First. His professionalism is a rare thing these days, He explained everything very clearly and followed up every inch of the way. I don’t know what I would have done without him

    • Hi Colleen,

      We are so pleased and so glad to hear. We will pass your message over to Andrew Cate also.

      We wish you all the very best.

      Kind Regards,
      The Seniors First Team.

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