Reverse mortgage advances

If you receive SSI, Medicaid, or other public assistance, your Reverse Mortgage loan advances are only counted as “liquid assets” if you keep them in an account past the end of the calendar month in which you receive them. You must be careful not to let your total liquid assets become greater than these programs allow. Another tax fact to bear in mind: interest on Reverse Mortgages is not deductible on your income tax returns until the loan is paid off entirely.With a Reverse Mortgage, you will never owe more than the value of your house. In this regard, a Reverse Mortgage is part loan and part insurance product – the Reverse Mortgage lenders are pooling their risk across many customers and making a calculated bet that most will pay back the loan in full with proceeds from the future sale of their home.You’re not making any bets with your retirement income planning. You can continue living in your home and enjoying enhanced retirement income from your home, even if what you owe the Reverse Mortgage lenders has exceeded the value of your home. When you move out of your house, you will only owe the current value of the house and nothing more.When you sell your home or no longer use it for your primary residence, you or your estate must repay the lender for the cash received from the Reverse Mortgage, plus interest and service fees. Any remaining equity belongs to you or your heirs. It’s important to remember that you can never owe more than the home’s appraised value when it is sold. None of your other assets will be affected by your Reverse Mortgage loan.