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'Interest & Tax Deduction' Category Archives

What You Need to Know About Reverse Mortgages and Tax Reform 

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You can be forgiven for not knowing exactly how tax reform will affect reverse mortgages  -- after all, with the legislation itself passed hastily to capitalize on rare consensus among Congressional Republicans; accountants and other financial professionals will likely be busy sorting out the implications all the way through tax day and beyond. For many homeowners, the disappearance...
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Reverse Mortgage Taxable Income & Medicare Medicaid Eligibility

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The economic downturn has taken its toll on many American households and especially on retirees. In fact, one study from Wider Opportunities for Women indicates that more than half of older households have incomes that don’t cover their basic living expenses. To help, many baby boomers are turning to the equity they’ve built up in their homes to help by...
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Reverse Mortgage Interest Repayments to Stop Negative Amortization

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You may think you understand reverse mortgages—and you probably do. They are, simply put, a type of mortgage that allows you to receive payments from your home equity rather than make them. It’s a negatively amortizing loan, meaning the balance grows over time, instead of falling. But there are some benefits that borrowers might not consider initially, that give reverse...
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Understanding Your Reverse Mortgage Statement

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Explanation of Terms: 1. Statement Date: The time period that the statement represents. In the sample statement, it is displaying all of the loan activity that occurred during the month of October 2007. 2. Payment Plan: This is the current payment plan type that has been selected. In the sample statement, the borrower selected a “Line of Credit” payment plan...
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About Reverse Mortgages & Property Tax Deferral Programs

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Oregon reverse mortgage borrowers made headlines recently when they were suddenly cut from a tax deferral program many had been enrolled in for several years or more. Previously, reverse mortgage borrowers in Oregon were eligible for the state’s senior property tax deferral program—a program that allows people over the age of 65 to defer their property taxes over time while...
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How to Declare Your Reverse Mortgage Interest Deduction

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Similar to a conventional mortgage, some of the costs associated with getting a reverse mortgage are tax deductible, as are any interest payments a borrower might make. For example, reverse mortgage origination fees and any broker fees can be claimed, says Joe Diaz, owner of American Essential Services, a tax preparation company located in Kissimmee, Fla. And, he continues, if...
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