Tax Day: Reverse Mortgages and Taxes

Happy Tax Day!

Happy Tax Day!

In honor of April 15, I’d like to bring up how taxes effect reverse mortgages. Reverse Mortgages are not considered taxable income.  As a result, reverse mortgage borrowers do not pay an income tax on the proceeds of their mortgage.

However, even reverse mortgage holders are still responsible for paying the property taxes and insurance on their home.  Seems they still have something to worry about on tax day after all.