'Tax Related' Category Archives

3 Advantages of Making Payments on a Reverse Mortgage

February 15, 2024 38 comments

A reverse mortgage lets you tap into your home equity without the burden of monthly payments. But here’s a lesser-known perk: you can make payments on a reverse mortgage if it suits your goals—turning it into an interest-only loan or paying down the principal penalty-free. Why would you want to? Let’s explore three key advantages and how this flexibility can...
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How to Understand Your Reverse Mortgage Statement

September 23, 2021 30 comments

Reverse Mortgage Statement - Explanation of Terms: 1. Statement Date: The period that the statement represents. The sample statement displays all of the loan activity that occurred during October. 2. Payment Plan: This is the current payment plan type that has been selected. The borrower selected a “Line of Credit” payment plan option in the sample statement. 3....
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Learn How Reverse Mortgages May Affect Your Taxable Income

September 9, 2021 18 comments

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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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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How Capital Gains and Proposition 13 affect Reverse Mortgages

June 19, 2019 6 comments

How would capital gains tax and California’s Proposition 13 affect my ability to get a reverse mortgage for purchase? Prop 13 and the Reverse Mortgage for Purchase A Home Equity Conversion Mortgage (HECM) for Purchase, sometimes called an “H4P,” is a product that allows a borrower that’s at least 62 years of age to take out a reverse mortgage in...
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Reverse Mortgages and Trumps Tax Reform

January 31, 2018 8 comments

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 through tax day and beyond. For many homeowners, the disappearance of a tax deduction for...
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Making Payments on a Reverse Mortgage: Interest & Tax Deductions

December 19, 2011 2 comments

One of the most important benefits that reverse mortgage borrowers receive at closing is the freedom of no longer having to make required monthly mortgage payments to their lender. It is this feature of the reverse mortgage product that makes it so unique - and as such - so difficult for those outside of our industry to comprehend and understand!...
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Can You Defer Property Taxes if You Have a Reverse Mortgage? It Depends!

November 21, 2011 4 comments

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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