Here’s A Fast Way To Understand A Reverse Mortgage

Posted June 29th, 2009.

The idea behind a reverse mortgage is to allow homeowners to use the value of their homes to their own benefit. Until the owner dies, the house is sold, or the owner relocates, the loan doesn’t have to be paid off. If you’re in the US, you can only get a reverse mortgage on your first mortgage. Not many CPAs would be in favour of such a choice

You may be unaware that one extra mortgage payment each year could reduce the length of your mortgage by five or six years. You only save a few thousand dollars annually through writing off your mortgage interest on your taxes. So, when it’s time to pay taxes, you get to write off just pennies to the dollar.

You could save thousands every month if you go all out — why not?