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How to Deduct Reverse Mortgage Interest & Other Costs

August 18, 2021 52 comments

[arlo_toc] Tax Benefits of Reverse Mortgages: What’s Deductible? Similar to a conventional mortgage, some costs associated with a reverse mortgage are tax-deductible, as are interest payments a borrower chooses to make. Joe Diaz, owner of American Essential Services, a tax preparation company in Kissimmee, Florida, explains that borrowers can claim origination fees, broker fees, and even “discount points” if a...
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2021 Reverse Mortgage Limits Soar to $822,375

August 5, 2021 8 comments

BREAKING: 2023 Reverse Mortgage Limits Reach All-Time High $1,089,300! 2021 Reverse Mortgage Limits Officially $822,375! The U.S. Department of Housing and Urban Development (HUD) just announced that the reverse mortgage lending limit for the Home Equity Conversion Mortgage (HECM) program will be raised from $765,600 to $822,325 effective January 1, 2021. The HUD Mortgagee Letter announcing the increase, can...
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Selling an “Upside-Down” Reverse Mortgaged Home

July 7, 2021 14 comments

I am still confused about debt after I sell. My wife and I have a current reverse mortgage debt of $300K on a Seattle (98146) house valued by Zillow at $310K. At time of reverse mortgage award it was appraised at $380K. We took out the reverse mortgage about 15 years ago thinking it would be our home until death....
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Should You Sell Your Home or Take a Reverse Mortgage?

July 2, 2021 2 comments

The decision to take out a reverse mortgage may stem from a variety of reasons, whether it’s a desire to stay in your home or the need for extra cash flow. When facing the decision to take out a reverse mortgage or sell your home, there are a few factors to weigh. Each option has its own pros and cons and...
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What Happens When You Inherit a Reverse Mortgaged Home?

July 1, 2021 4 comments

Hi ARLO, my mom passed away, I have inherited her home with a reverse mortgage on it. Can I still try and refinance the loan or home, or do I have to get a home loan myself? The reverse mortgage becomes due and payable when the last borrower on the loan is no longer living in the property. If mom...
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How a Reverse Mortgage Can Protect Your Assets from Inflation

July 1, 2021 no comments

The troubled economy, pandemics and social unrest have made the idea of retirement very uncertain for many seniors who are now struggling to come up with ways to securely finance their futures. What most senior homeowners don’t realize is that getting a line of credit through a reverse mortgage can help them preserve their equity from inflation, as it will...
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Reverse Mortgage Age Limits & Title Cautions

June 29, 2021 48 comments

The HUD HECM program limits the youngest borrower to the age of 62 or older to be eligible for the reverse mortgage program. If there is a spouse of a borrower who is not yet 62, the older spouse can still get a reverse mortgage and the younger spouse can remain on title and would be known as an “eligible...
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Reverse Mortgage Payment Options: Lump Sum vs Line of Credit

June 29, 2021 14 comments

If I do a reverse mortgage, can I pull all the money upfront as a lump sum, or do I have to have a line of credit? Is there a cost to pulling out all the money upfront? HUD changed the program a little while back so that borrowers are capped at what they can pull from home based...
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BREAKING: HUD Just Issued Deferral for Non-Borrowing Spouses

May 6, 2021 18 comments

BREAKING NEWS: With Mortgagee Letter 2021-11 (ML 2021-11), HUD just clarified to reverse mortgage borrowers who obtained reverse mortgages when one spouse was not on the loan and was considered a non-borrowing spouse. Prior to 2014 when HUD changed the rules, these spouses had no protections under the loan, and after the 2014 changes, the “eligible non-borrowing spouse”...
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When is the Best Time to Take a Reverse Mortgage?

March 14, 2021 4 comments

Ultimately the right time to get a reverse mortgage depends on what works out best for the borrower. The timing must be right for you and your needs. But we hear borrowers who are convinced that they want the loan but are thinking that they should wait a year or two until one of the borrowers is older so they...
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