It doesn’t really go with the territory but quite a few seniors get in touch with me and ask if they can pay the mortgage company monthly.

I have reservations about their intentions to make monthly or periodic payments.

The reason for my skepticism is people want reverse mortgages for a very specific reason. They need the money because there isn’t enough. That being the case why would that change for them to have enough later to make extra payments?

But the fact is some will make occasional payments. So, I always get the question of stipulations regarding making payments on the mortgage.

The truth be known reverse mortgage lenders, and more particularly FHA, have no qualms with borrowers making payments of any kind prior to the end of the mortgage.

A big reason many people ask is they have the desire to use the interest write-off. The reverse mortgage is just a mortgage so, like a forward mortgage, you can use that write off the same way.

What is different about the reverse mortgage in comparison to the forward mortgage is you don’t make periodic interest payments, so most reverse mortgage customers don’t get that particular write-off until the very end of the mortgage.

You gotta make mortgage payments to get the write-off. This in itsef is an enticing reason for a customer to at least ask the question.

Of course, when prepaying the mortgage one must consider the tax laws. They always cramp the average person’s style and this is no different. Since most people finance closing costs in a reverse mortgage these costs must be paid prior to getting any interest write-off.

Just keep in mind the order in which early payments are applied.

A benefit of paying costs first is the origination fee which was financed into the loan. This is one of the biggest closing costs when you closed on your mortgage.

At least you have the lender’s fee as a write-off while paying off closing cost prior to getting the interest write-off. Please check with your CPA on all tax related matters.