One of the most common questions that we get is, can I deduct the interest on my reverse mortgage? The short answer is no.
The reason why is you’re not actually making a payment. Typically on a reverse mortgage, one of the reasons why a lot of folks look at reverse mortgages is because you don’t have to make a payment. Payments are optional. So, if you don’t actually make a payment, you’re not actually paying the interest. On a reverse mortgage, the interest is added to the balance of your loan indefinitely, for your entire life, so you never have to make a payment.
Now, if you do make a payment on the reverse mortgage, you may have a portion of your interest that’s tax deductible. This is something that you should consult a tax professional about. I’m not a tax professional. I’m a mortgage originator. But talk to your tax professional about this. But again, if you’re not actually making the payment on the mortgage, you’re not actually paying the interest, so you’re not going to have a tax deduction for the interest.
I hope that helps you out. Give me a call with all of your reverse mortgage questions or any other mortgage related questions. I’m happy to answer anything about forward mortgages as well, regular mortgages. 303-670-0137 or email@example.com