Search Description

Are Interest Payments on a HECM Reverse Mortgage Deductible?
Are Interest Payments on a HECM Reverse Mortgage Deductible?

Mortgage interest cannot be deducted until it is paid. It becomes deductible when the balance is repaid in full after your death or after you move out of the house permanently. If you remain in the house and make a partial prepayment, the payment is allocated first to the portion of the loan balance that represents mortgage insurance, then to the portion that represents servicing fees, and only then to the portion that represents interest.