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Reverse Mortgage
What Are the Tax Consequences of a Reverse Mortgage?
The proceeds of a reverse mortgage are generally tax-free and generally do not affect Social Security or Medicare benefits (although they may affect eligibility for public assistance programs). Interest on reverse mortgages is not deductible on income tax returns until the loan is paid off in part or whole. Could My Estate End Up Owing Money? When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. Note that a "nonrecourse" clause, found in most reverse mortgages, prevents either you or your estate from owing more than the value of your home when the loan is repaid. Share Article:
Investment and insurance products and services are offered through Osaic Institutions,Inc. Member FINRA / SIPC. Osaic and Friend Bank are not affiliated. Products and services made available through Osaic are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.  |