Sergio SantanaGuestJanuary 5, 2021 at 4:33 am
If I make a voluntary payment on a reverse mortgage will I receive 1098 intrest paid form for the year the payment was paid and what is the percentage of the payment that will go towards the intrest. Thank you
AdministratorMay 8, 2021 at 11:33 am
Hi Sergio, yes, if you make payments toward the HECM, any interest paid will likely be considered a tax write off. Be sure to check with an accountant to be sure. Keep in mind that your payments may first go to any unpaid fees to get the loan before they start going toward interest (check with your lender to be sure). Once all the interest is paid, then the payments will start going toward the original principal amount at the time the HECM was opened.
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