10 Ways to Cut Spending Before Applying for a Reverse Mortgage

Have you done everything possible to reduce your spending? It’s a good idea to cut the fat in your budget before applying for a reverse mortgage. Use the following tips to trim expenses and help stretch the proceeds from a reverse loan.

1. Use generic drugs. Whenever your doctor writes a prescription, ask if there is a generic available that can help you save money.
2. Review your bills carefully to make sure you are being charged correctly. Not reading through itemized statements can cost you big time.
3. Use coupons for groceries, clothing, electronics, etc. Many retailers offer coupons or discounts in the newspaper and on the Web, so take the time to scout at deals. Sign up for special offers from your favorite stores.
4. Watch your themostat. Adjusting your heat or air conditioner can help you trim your utility bills.
5. Keep up with regular maintenance on your car, such as oil changes, to avoid bigger problems that require expensive repairs.
6. Stop running up credit card debt. Focus on paying off cards and closing accounts.
7. Always pay your bills on time. Being late with payments results in late fees and other penalties. For instance, a late credit card payment could cause your interest rate to jump.
8. Ask your cable and cellphone companies to decrease your monthly rate. They may be willing to give you the rate being offered to new subscribers. Consider eliminating services that you don’t really need or use infrequently.
9. Consider finding a roommate if you need help with housing expenses. Even if you apply for a reverse home mortgage, it can be helpful to have someone pay rent. Take time to screen prospective tenants carefully to avoid conflicts.
10. Don’t live beyond your means. Pick and choose which hobbies and activities you really want to participate in and budget for them.

If necessary, consider downsizing to cut your expenses. Proceeds from a Home Equity Conversion Mortgage (HECM) can be used to purchase a less expensive home as long it is going to be your principal residence.

This entry was posted on Tuesday, July 20th, 2010 at 9:57 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.