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QUESTION:
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taxes | | I am wondering what happens to your taxes, interest rate on mortgages is the main deduction we have, if we do a reverse mortgage what effect will that have? thank you, kathy |  | asked by kathy, 4/2/2008 |
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Categories:
Tax Planning
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| ANSWERS: | | Answered by: Editorial, 04/03/08
Overall Rating:  Be the first to rate it. | Each situation is unique and you should consult a tax advisor, but generally, reverse mortgages provide tax-free income through the equity release from your home.
However, a Reverse Mortgage does require that you pay off your mortgage before you receive any funds. So, you will no longer have the interest paid as a deduction. Login to rate this answer: | | Answered by: Tamera, 04/08/08
Overall Rating: Be the first to rate it. | Hi Kathy-Interest on a Reverse Mortgage is accrued, not paid. Interest accrued is not deductable. So until the interest is actually paid, you will not receive the 1099 interest statement. Though that is a potential downside, most of my borrowers still find that the reverse mortgage is beneficial to them.I am a Reverse Mortgage Specialist employed by Financial Freedom, one of New Retirements preferred lenders. I would be happy to answer any other questions you may have regarding reverse mortgages, as well as tell you how much is available and the costs associated with it.Tam Field FinancialFreedom.com :) Login to rate this answer: |
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