If I get a reverse mortgage, I’ll lose my mortgage interest write-off. We frequently hear that when we first meet clients. It is a common misconception.
What homeowners 62+ really need is clarity and direction around how and when interest on a reverse mortgage is tax deductible.
In the past two years, there has been much favorable press around reverse mortgages both from high profile news sources (Wall Street Journal, NYT, Forbes, Bloomberg) and Ph.D. academics discussing a reverse mortgage as a wealth management tool. You can find these articles on our Facebook page. Despite the coverage, there is a lot of confusion around what happens at the end of a reverse mortgage. We're frequently asked the following...
Our post titled, Reverse Mortgage Home Purchase Strategy, detailed a three-part strategy around continuing to be a home owner as opposed to selling and becoming a renter. The financial benefit to the senior and their estate is considerable. The third part of that strategy is minimizing property taxes by taking advantage of CA Propositions 60/90 when possible. This article answers the most common questions we hear about Prop 60 or 90 and provides some background information you'll need to implement the strategy.
