Is interest on a reverse mortgage tax deductible a thing

Is interest on a reverse mortgage tax deductible, you ask? Well, buckle up, buttercup, because navigating the tax world can feel like trying to herd cats in a laser pointer factory. We’re diving headfirst into the intriguing, and sometimes baffling, world of reverse mortgages and whether those accrued interest bits can actually save you some dough come tax time.

It’s a topic that often leaves folks scratching their heads, wondering if they’ve stumbled upon a secret tax loophole or just a really complicated way to borrow against their home.

Think of a reverse mortgage as a magic money tree that grows in your backyard, but instead of fruit, it gives you cash. The twist? The tree also grows interest, and understanding how that interest behaves and if it’s a tax-deductible treat is the name of the game. We’ll break down the nitty-gritty of how interest accrues, the general tax mumbo-jumbo surrounding home equity debt, and the specific IRS regulations that might just make your day a little brighter.

Understanding Reverse Mortgage Interest

Alright, so let’s break down how interest works with reverse mortgages, ’cause it’s kinda different from your usual loan, you know? It’s not like you’re making monthly payments to chip away at it. Instead, the interest is kinda chilling and piling up.Basically, a reverse mortgage lets you tap into the equity of your home, and you get cash. But, like any loan, there’s interest involved.

The wild part is that you don’t actually pay this interest out of pocket while you’re living in the house. It just gets added to the loan balance, making it grow over time. It’s like your debt is leveling up while you’re just vibing at home.

How Interest Accrues on a Reverse Mortgage

So, the interest on a reverse mortgage is calculated based on the loan balance, the interest rate, and how long you’ve had the loan. It’s compound interest, meaning the interest you accrue also starts earning interest. This can make the loan balance grow pretty fast, especially if you keep the loan for a long time or if interest rates are high.

It’s not like a regular mortgage where your payments go towards both principal and interest, shrinking the balance. Here, the balance is pretty much always going up.

Accumulation Over Time, Is interest on a reverse mortgage tax deductible

Imagine you got a reverse mortgage, and you’re not touching the money for a while. The interest is still ticking up. The longer you have the loan, the more interest gets tacked on. If you take out cash advances or the loan balance grows because of the interest, the next interest calculation will be on that bigger number. It’s a snowball effect, for real.

The loan balance isn’t static; it’s dynamic, and interest is a major player in that dynamic.

Common Scenarios Where Interest Becomes a Big Deal

There are a few situations where interest can really start to dominate the loan balance.

• Long-Term Homeownership: If you plan on staying in your home for many years after getting a reverse mortgage, the interest has a lot of time to accumulate. This is probably the most common scenario where the loan balance can get pretty hefty.
• Taking Large Cash Advances Early: If you decide to take out a significant chunk of your available funds right at the beginning, that larger initial balance means more interest will accrue from day one.
• Rising Interest Rates: If you have a reverse mortgage with a variable interest rate and rates go up, your interest accrual will speed up. It’s like the loan is getting hungrier.
• Not Making Optional Interest Payments: While you’re not required to make payments, some people choose to pay down the accrued interest to keep the loan balance from growing too quickly. If you don’t do this, the interest just keeps adding up.

It’s important to remember that the loan isn’t due until the last borrower moves out permanently, sells the home, or passes away. But understanding how that interest builds is key to knowing the full picture of your reverse mortgage.

Tax Deductibility of Reverse Mortgage Interest

Yo, so like, let’s spill the tea on whether the interest you pay on a reverse mortgage can get you some sweet tax breaks. It’s not as straightforward as your regular home loan, but there are definitely some vibes to catch. We’re gonna break down the IRS rules so you’re not left in the dark, and figure out if this interest is actually deductible.When it comes to home equity debt, the IRS has some pretty specific rules, and reverse mortgages fall under that umbrella.

It’s all about how the money is used and if it’s considered a loan secured by your main pad. We’ll get into the nitty-gritty of what the IRS is looking for to make sure you’re on the right track with your taxes.

General Tax Rules for Home Equity Debt

Okay, so for a regular home equity loan or line of credit, the interest you pay is generally deductible if the loan proceeds are used to buy, build, or substantially improve your home that secures the loan. Think of it as an investment in your crib. The IRS wants to see that the debt is tied to your property’s value and isn’t just cash you’re squirreling away for, like, a killer vacation.There are limits, too.

The total mortgage debt that can generate deductible interest is capped. For loans taken out after December 15, 2017, the limit is $750,000 for married couples filing jointly, and $375,000 if you’re single or married filing separately. This includes your original mortgage plus any home equity debt.

IRS Regulations for Home Loan Interest

The big kahunas over at the IRS have laid out some guidelines in their publications, like Publication 936, “Home Mortgage Interest Deduction.” This is where they define what qualifies as home equity debt and what doesn’t. The key is that the loan must be secured by your main home or a second home.

“Home equity debt is debt that is secured by your main home or second home (your qualified residence) to the extent that, when combined with all other debt secured by that home, the total debt does not exceed the home’s cost or adjusted basis, whichever is less.”

IRS Publication 936 (paraphrased for clarity)

This means if you owe more on your house than it’s worth, you might not be able to deduct interest on the excess. It’s all about staying within the value of your home.

Conditions for Deductible Reverse Mortgage Interest

Here’s where it gets a little tricky, but totally doable. For interest on a reverse mortgage to be deductible, it needs to meet certain criteria. The IRS generally treats reverse mortgage interest as deductible if the loan proceeds are used for a qualified purpose.The primary qualified purpose is to pay off an existing mortgage on the home. If you use the reverse mortgage cash to clear your old mortgage debt, that interest is usually fair game for deduction.

It’s like swapping one debt for another, but this new one might come with tax perks.Another condition is that the loan must be secured by your principal residence. So, if you’re using it on your main pad, that’s a good sign. The loan also needs to be structured as a mortgage, meaning it’s a loan secured by real estate.

Primary Requirements for Claiming Deductions

To actually claim these deductions, you gotta have the paperwork straight. You’ll need to keep good records of your reverse mortgage statements, which will show the interest paid.The main requirements for claiming this deduction are:

• The reverse mortgage must be secured by your principal residence.
• The loan proceeds must be used for a qualified purpose, most commonly to pay off an existing mortgage on that home.
• You must itemize your deductions on your tax return. If you take the standard deduction, you won’t be able to deduct this interest.
• The interest paid must be reported to you on IRS Form 1098, Mortgage Interest Statement, by the lender.

If you meet these requirements, you can then report the deductible interest on Schedule A (Form 1040), Itemized Deductions. It’s like checking off boxes to make sure you’re getting all the tax benefits you’re entitled to.

Factors Influencing Deductibility

Alright, so we’ve talked about whether the interest you pay on a reverse mortgage can be written off. Now, let’s dive into the deets that actually make that happen. It’s not a simple yes or no; a bunch of stuff plays a role, and knowing these factors is key to understanding your tax situation. Think of it like figuring out your grades – a lot goes into the final score.Basically, the IRS looks at how much you borrowed, how much equity you’ve got in your crib, and what you’re actually doing with that cash.

They also check out your age ’cause, well, that’s a whole thing with reverse mortgages. We’ll break down how all these pieces fit together to determine if that interest is a write-off or not.

Loan Amount and Borrower’s Equity Position

The amount of cash you snag from your reverse mortgage and how much of your home’s value you actually own (your equity) are super important. The bigger the loan, the more interest you’ll rack up over time, and that’s the stuff that

could* be deductible. But here’s the kicker

you can only deduct interest on the amount of the loan that’s actually secured by your home. So, if you’ve got a ton of equity, you’ve got more wiggle room.Here’s how it shakes out:

• Loan Amount: The more you borrow, the more interest accrues. This is the foundation for potential deductions.
• Equity Position: If your equity is high, the interest on the loan amount up to the home’s value is generally considered deductible. If you owe more than your home is worth, it gets a bit more complicated, but for deductible interest, it’s tied to the loan’s security in your home.

Imagine you have a $500,000 home and you take out a reverse mortgage for $200,000. The interest on that $200,000 is what we’re talking about for potential deductions. If you somehow owed $600,000 on a $500,000 home (which is rare with reverse mortgages unless there are other liens), the deductible interest would be limited to what’s secured by the $500,000 value.

Impact of How Reverse Mortgage Proceeds Are Used

This is a biggie. The IRS wants to know what you’re doing with the money. If you’re using the cash to pay off your existing mortgage or to make essential home improvements that keep your place in good shape, that interest is more likely to be deductible. It’s seen as supporting your homeownership.However, if you’re just blowing the cash on a yacht or a world tour (no judgment, but the IRS might!), then that interest probably won’t fly as a deduction.

They’re looking for the interest to be tied to the home itself.Here’s a breakdown of common uses and their tax implications:

• Paying Off Existing Mortgage: This is usually a green light for deductibility. You’re clearing debt on the home.
• Home Improvements: Essential repairs or upgrades that maintain or improve your home’s value are generally viewed favorably for interest deductibility. Think new roof, fixing plumbing, or making it more accessible.
• Living Expenses: While the money is yours to use, using it solely for day-to-day living expenses might make the interest less straightforwardly deductible compared to home-related uses.
• Other Investments or Purchases: Using the funds for things completely unrelated to your home, like stocks or luxury items, generally means the interest won’t be deductible.

For example, if you use $50,000 from your reverse mortgage to replace a failing HVAC system, that interest is more likely to be deductible because it’s directly benefiting and preserving your home. If you took that same $50,000 and bought a fancy sports car, the interest on that portion of the loan wouldn’t be deductible.

Borrower’s Age Role in Reverse Mortgage Structure and Implications

Your age is a fundamental part of getting a reverse mortgage in the first place. Generally, you need to be 62 or older to qualify for a Home Equity Conversion Mortgage (HECM), the most common type. The older you are, the more you can typically borrow, because the lender is basing the loan amount on your life expectancy. This directly impacts the loan amount and, consequently, the potential interest that accrues.The structure of the reverse mortgage is inherently tied to your age.

Since older borrowers have a shorter life expectancy, they can access a larger portion of their home equity. This means:

• Higher Loan Amounts for Older Borrowers: This leads to more interest accumulating over the life of the loan, creating a larger pool of potentially deductible interest.
• Longer Loan Term Assumption: While the loan is technically due when the borrower moves out or passes away, the calculation of how much can be borrowed assumes a longer period for older individuals, influencing the total interest that
  -could* be paid.

Think of it this way: a 62-year-old and an 85-year-old with the same home value will likely qualify for different loan amounts. The 85-year-old, being older, can borrow more, which means more interest accrues, and thus, more potential for tax deductions on that interest, assuming other conditions are met.

Comparison of Tax Treatment: Reverse Mortgage Interest vs. Traditional Home Equity Loan Interest

This is where things can get a little confusing, but the core principle is similar: interest on debt secured by your home is generally deductible, up to certain limits.Here’s how they stack up:

Feature	Reverse Mortgage Interest	Traditional Home Equity Loan Interest
Primary Purpose of Deduction	Interest paid on the loan balance is potentially deductible, especially if proceeds are used for home improvements or to pay off the existing mortgage.	Interest paid on the loan balance is generally deductible if the loan is used to buy, build, or substantially improve the home securing the loan.
Loan Repayment Structure	Interest accrues and is added to the loan balance. It’s not paid out-of-pocket until the loan is repaid. Deductibility is based on accrued interest.	Typically paid monthly out-of-pocket by the borrower. Deductibility is based on actual payments made.
Loan Amount Limits	Limited by home equity and borrower’s age. Interest deduction is tied to the loan amount secured by the home.	Limited by home equity (often up to 80-90% of value). Interest deduction is tied to the loan amount secured by the home.
Tax Form Reporting	You’ll typically receive a Form 1098 from the lender reporting the interest accrued.	You’ll typically receive a Form 1098 from the lender reporting the interest paid.

The main difference is how the interest is handled. With a traditional home equity loan, you’re making payments, so you’re deducting what you actually paid. With a reverse mortgage, the interest compounds onto the loan balance. You’re not paying it out of pocket monthly, but the IRS still considers that accrued interest as a potential deduction when the loan is eventually repaid, provided the conditions are met.

The rules for what qualifies as a “substantial improvement” for a home equity loan are also similar to what’s considered a deductible use for reverse mortgage interest.

For both reverse mortgages and traditional home equity loans, the key to deducting interest is that the loan must be secured by your primary or secondary residence, and the proceeds must be used for specific purposes, primarily related to the home.

Potential Scenarios for Deductibility

Alright, so we’ve already peeped the deets on whether reverse mortgage interest is even a thing tax-wise. Now, let’s dive into the real tea – when does this interest actually count as a write-off? It’s not a simple yes or no, obvi. It’s all about the vibe and how you’re rolling with your cash.This section is gonna break down the situations where you might be able to snag that tax deduction for your reverse mortgage interest.

We’ll look at the chill scenarios, the ones where it’s a bit more complicated, and even a flowchart to help you figure out your own situation. It’s basically a cheat sheet for your taxes, so you don’t end up stressing.

Deductible Interest Scenarios

So, when is the interest on your reverse mortgage likely to be deductible? Think of it as the situations where the IRS is chill with you writing it off. These are the main ones that usually get the green light.

Here are the scenarios where you’re probably good to go:

• Primary Residence: This is the big one. If the home you have the reverse mortgage on is your main crib, your primary residence, then the interest is generally deductible. Like, this is the default setting for most people.
• Home Equity Conversion Mortgage (HECM): Most reverse mortgages are HECMs, and the interest on these is usually deductible, provided it’s your primary residence. It’s the standard government-backed loan, so it’s pretty straightforward.
• Interest Paid Over Your Lifetime: The interest accrues over time, and you can deduct it as it’s paid or added to your loan balance. You don’t have to wait until you sell the house to claim it, though some people do.
• Loan Used for Home Improvements: If you’re using the reverse mortgage funds, and thus the interest, to make improvements on your primary residence that increase its value or preserve it, that’s usually a solid deduction. Think kitchen remodel or fixing that leaky roof.

Situations Limiting or Negating Deductibility

Now, let’s talk about when the tax deduction party might get shut down or at least have some serious limitations. It’s not always a slam dunk, and sometimes the IRS is like, “Nah, fam.”

Here are some situations where deductibility might be limited or not applicable:

• Non-Primary Residence: If the reverse mortgage is on a vacation home, a rental property, or any place that isn’t your main digs, the interest is generally not deductible. The IRS is all about your primary living space for this.
• Loan Proceeds Not Used for Home: If you’re taking out cash from the reverse mortgage and not using it for anything related to the home itself (like paying off other debts that aren’t directly tied to the property’s upkeep or value), it can get sticky. The IRS wants to see the money benefiting the home.
• Loan Balance Exceeds Home Value (in some cases): While reverse mortgages allow you to borrow against your home’s equity, if the loan balance significantly outstrips the home’s value and you’re not in a primary residence scenario, it could raise red flags.
• Non-Qualified Loans: Some proprietary reverse mortgages might have different rules, and if they don’t meet certain federal guidelines, the interest deductibility could be affected. Stick with HECMs if you want the most straightforward tax treatment.
• Passing Away and Loan Repayment: When you pass away, the loan becomes due. The interest accrued up to that point is generally deductible for your estate, but how it’s handled can get complex and might involve an estate tax professional.

Reverse Mortgage Interest Deductibility Decision Flowchart

Trying to figure out if your reverse mortgage interest is deductible can feel like navigating a maze. To make it less cringe, here’s a flowchart to help you walk through the decision-making process. It’s designed to guide you through the key questions.

Let’s break down the decision process:

1. Is the home your primary residence?
   • Yes: Proceed to Question 2.
   • No: Interest is generally NOT deductible. (End of path)
2. Is the loan a federally-insured Home Equity Conversion Mortgage (HECM)?
   • Yes: Interest is generally DEDUCTIBLE. (Proceed to Question 3 to confirm usage)
   • No: Interest may be deductible depending on loan type and usage. Consult a tax professional. (End of path)
3. Were the loan proceeds used for purposes directly related to the home (e.g., repairs, maintenance, property taxes)?
   • Yes: Interest is generally DEDUCTIBLE.
   • No: Deductibility may be limited or denied. Consult a tax professional.

Note: This flowchart is a simplified guide. Tax laws can be complex, and individual circumstances vary. Always consult with a qualified tax advisor or CPA for personalized advice.

Documentation and Record-Keeping

Alright, so you’re wondering about the nitty-gritty of proving your reverse mortgage interest deductions, right? It’s not just about saying “I paid this,” you gotta have the receipts, fam. Keeping your ducks in a row is key to not getting audited or having the IRS be all like, “Nah, we don’t believe you.” It’s all about having your paper trail on point.Think of this section as your ultimate cheat sheet for not messing up your taxes when it comes to your reverse mortgage.

We’re talking about the essential docs, why keeping them is a big deal, and how to not turn your tax prep into a total dumpster fire.

Essential Documents for Substantiating Deductions

To actually claim those sweet, sweet reverse mortgage interest deductions, you gotta have the proof. The IRS isn’t just gonna take your word for it, you know? They want to see the actual paperwork that shows you paid interest and how much. This is where you gotta get your admin game strong.Here’s the lowdown on the docs you absolutely need to have in your arsenal:

• Form 1098 (Mortgage Interest Statement): This is like the VIP pass. Your lender will send you this form, usually by January 31st, showing the total interest you paid on your mortgage for the year. It’s the main event for proving your interest payments.
• Closing Disclosure (or HUD-1 Settlement Statement for older loans): This document is crucial because it breaks down all the costs associated with your mortgage when you first got it. It’ll show any upfront interest paid or points, which might be deductible.
• Monthly Mortgage Statements: Keep these babies handy! They show your payment breakdown, including how much went towards interest versus principal. It’s like a running log of your mortgage activity.
• Amortization Schedule: If you can get one from your lender, this schedule shows how each of your payments is applied over the life of the loan, clearly separating principal and interest. Super helpful for clarity.
• Proof of Payment: This could be bank statements, canceled checks, or credit card statements that clearly show the payments you made towards your mortgage. It’s the evidence that you actually sent the cash.

Importance of Maintaining Accurate Records

Okay, so you’ve got the documents, but why is itso* important to keep them all neat and tidy? It’s not just about being organized for the sake of it, though that’s cool too. It’s about protecting yourself and making sure you get every deduction you’re entitled to. If the IRS comes knocking, and you can’t back up your claims, you’re gonna be in a world of hurt.

Accurate records are your shield and sword in the tax battle.Maintaining accurate records for your reverse mortgage interest payments is your first line of defense against tax headaches. It ensures that when tax season rolls around, you’re not scrambling to find lost papers or guessing at numbers. This precision helps you accurately report your income and deductions, which can lead to a lower tax bill.

Plus, if you ever get audited, having everything documented means you can present a solid case, saving you time, stress, and potentially a lot of money. It’s about being prepared and confident in your tax filings.

Best Practices for Organizing Financial Statements

Let’s be real, dealing with financial statements can be a drag. But if you want to make tax time less of a nightmare, you gotta have a system. Think of it like organizing your closet – when everything is in its place, life is just easier. For reverse mortgage stuff, this means having a dedicated spot for all those important papers.Here are some pro tips for keeping your reverse mortgage financial statements organized for tax purposes, so you’re not stressing when that tax deadline looms:

• Create a Dedicated Folder or Binder: Seriously, get a physical folder or binder, or even a digital one on your computer, and label it clearly, like “Reverse Mortgage Tax Docs.” Toss all your relevant statements and forms in there as soon as you get them.
• Digitalize Everything: Scan or take clear photos of all your important documents and save them to a secure cloud storage service (like Google Drive, Dropbox, or iCloud) or an external hard drive. This way, even if your physical copies get gobbled up by a rogue vacuum cleaner, you’ve still got backups.
• Categorize by Year: Within your main folder or digital system, create subfolders for each tax year. This makes it super easy to pull up the exact documents you need for a specific tax return.
• Keep Records for Several Years: The IRS generally has a three-year window to audit you from the date you file your return. However, it’s a good idea to keep records for at least seven years, just to be safe. More is usually better when it comes to tax docs.
• Review Statements Regularly: Don’t just stuff them in a folder and forget about them. Take a few minutes each month or quarter to quickly review your mortgage statements. This helps you catch any errors early and understand your interest payments better.
• Use Tax Software or Hire a Pro: Many tax software programs allow you to upload or input your financial data directly. If things are getting complicated, a tax professional can help you organize everything and ensure you’re taking advantage of all eligible deductions.

Expert Consultation and Guidance

Yo, so like, dealing with taxes and reverse mortgages can get gnarly, right? It’s not exactly TikTok material. But don’t stress too hard, ’cause that’s where the pros come in clutch. They’re like your secret weapon for not messing up your finances and, like, totally owning the tax game.When it comes to the nitty-gritty of reverse mortgage tax deductibility, it’s super important to have someone in your corner who actually knows their stuff.

Tax pros and financial advisors are the OGs who can break down all the confusing jargon and make sure you’re not leaving any cash on the table or, worse, getting hit with a surprise bill from Uncle Sam. They’re there to make sure you’re making the smartest moves, period.

The Role of Tax Professionals

Tax professionals are basically your financial wizards when it comes to figuring out how your reverse mortgage impacts your taxes. They’ve got the inside scoop on all the IRS rules and regs, which, let’s be real, are probably more complicated than a K-drama plot. These peeps can help you navigate the whole tax deduction maze, making sure you claim everything you’re entitled to without, you know, accidentally committing tax fraud.

They’re the ones who can spot the legit deductions from the ones that are, like, totally sus.

The Importance of Personalized Financial Advice

Getting advice from a financial advisor is a total game-changer, especially when it comes to a big deal like a reverse mortgage. They don’t just look at your taxes; they look at your whole financial picture. This means they can tell you how the reverse mortgage fits into your retirement plans, your other investments, and your overall financial vibe. It’s like getting a custom game plan instead of a generic one.

Wondering if reverse mortgage interest is tax deductible? It’s a great question! While exploring your financial options, you might also be curious about what is better than a reverse mortgage to maximize your retirement income. Regardless of other strategies, understanding the tax deductibility of reverse mortgage interest remains a key consideration for savvy homeowners!

They help you make sure the reverse mortgage is actually the right move for

you*, not just some random person.

Common Pitfalls Without Professional Input

Trying to figure out reverse mortgage tax deductions on your own can be a total fail. You might miss out on deductions you could totally have, which is, like, a bummer. Or, and this is the really scary part, you could accidentally claim stuff you’re not supposed to, and then the IRS comes knocking. It’s way easier to mess up than you think.

You could also end up making decisions about your reverse mortgage that aren’t actually good for your long-term financial health because you didn’t have the full picture.To avoid these major fails, it’s crucial to get professional help. Here are some common mistakes people make when they go it solo:

• Missing out on legitimate interest deductions because they don’t know they exist or how to claim them.
• Incorrectly calculating or reporting the deductible interest, leading to potential penalties.
• Not understanding how the reverse mortgage funds themselves are taxed (or not taxed), which is a whole other ballgame.
• Making financial decisions based on incomplete tax information, which can have long-term consequences.
• Getting blindsided by tax implications they didn’t see coming because they didn’t consult with someone who could predict them.

Conclusion: Is Interest On A Reverse Mortgage Tax Deductible

So, there you have it! While the answer to whether interest on a reverse mortgage is tax deductible isn’t a simple “yes” or “no” for everyone, it’s definitely not a mythical creature. It hinges on a few key factors, like how you use the funds and your overall financial picture. Remember, keeping good records is your superhero cape in this tax adventure, and when in doubt, a chat with a tax professional is like having a wise old wizard by your side.

Don’t let tax season turn you into a grayscale version of yourself; arm yourself with knowledge and a good accountant!

FAQ Explained

Can I deduct interest if I use the reverse mortgage funds for something other than my primary residence?

Generally, no. Tax deductibility of home equity debt interest, which often applies to reverse mortgages, is typically tied to using the funds to buy, build, or substantially improve your main home. Using the cash for a fancy vacation or a fleet of unicycles might make that interest less likely to be deductible.

What if I’m under 62 and have a reverse mortgage? Does that change anything for tax deductions?

The age of the borrower is a pretty big deal in the reverse mortgage world, especially for the common HECM loans which require borrowers to be 62 or older. If you’re younger and somehow have a reverse mortgage, the rules around tax deductibility might be different or even not applicable, as it might not fall under the standard home equity debt provisions.

How does the amount of my reverse mortgage loan affect whether the interest is deductible?

The loan amount itself doesn’t directly dictate deductibility, but it can indirectly influence it. For example, the IRS has limits on how much home equity debt interest you can deduct, often tied to the fair market value of your home. A larger loan might push you closer to or over these limits.

Is there a difference in tax treatment between reverse mortgage interest and interest on a regular home equity loan?

The core tax principles for home equity debt often apply to both. However, the unique nature of reverse mortgages, where you receive funds rather than making payments initially, can create different scenarios and require careful attention to IRS rules to ensure proper deductibility.

What if my reverse mortgage has non-interest charges, like origination fees? Are those deductible?

Typically, non-interest charges like origination fees are not deductible in the year they are paid. They might be factored into the overall cost basis of the loan or amortized over the life of the loan, but they aren’t usually a direct tax write-off like interest can be.