Mortgages
Do You Pay a Monthly Payment on a Reverse Mortgage?
No principal-and-interest payment is required on a reverse mortgage — but several monthly obligations remain. What you still have to pay, and what happens if you don't.
By Michael Bennett · Reviewed by Legamoney Mortgage & Lending Desk
Key takeaways
- There is no required monthly principal-and-interest payment on a reverse mortgage.
- Property taxes, homeowners insurance, and HOA dues remain due every month or every cycle.
- Voluntary payments are allowed and reduce the compounding balance.
- Missing property charges is the leading cause of reverse mortgage foreclosure.
In this guide
Why there is no monthly payment
A reverse mortgage is structured as a deferred-repayment loan. Instead of amortising the debt over a term, the lender lets interest and insurance premiums capitalise onto the balance and recovers everything in one settlement when the loan matures — at sale, permanent move-out, or death of the last borrower.
What you still pay every month
Ongoing obligations under a reverse mortgage
| Obligation | Required? | Consequence of missing it |
|---|---|---|
| Principal and interest | No | Not applicable — interest accrues to the balance |
| Property taxes | Yes | Loan can be called due and payable |
| Homeowners insurance | Yes | Loan can be called due and payable |
| HOA / condo dues | Yes, where applicable | Lien risk and potential default |
| Repairs and upkeep | Yes | Property-condition default |
| Utilities and living costs | Yes | Unchanged by the loan |
Can you make payments anyway?
Yes, and there is usually no prepayment penalty. Paying the accrued interest each month keeps the balance flat instead of compounding, which preserves equity for heirs. On a line-of-credit HECM, repayments generally restore available credit.
When the bill finally arrives
- The last borrower dies, sells, or permanently leaves the home.
- The servicer issues a due-and-payable notice with the payoff figure.
- Heirs sell, refinance, or transfer the property to settle it.
- Any shortfall on an FHA-insured HECM is covered by mortgage insurance, not by the estate.
Sources
- 01U.S. Department of Housing and Urban Development — Home Equity Conversion Mortgage (HECM) program
Official programme rules for FHA-insured reverse mortgages, including borrower obligations.
- 02Consumer Financial Protection Bureau — mortgage guidance and Ability-to-Repay rule
Federal consumer guidance on mortgages, disclosures, and lender underwriting obligations.
Frequently asked questions
Do you pay a monthly payment on a reverse mortgage?
No monthly principal-and-interest payment is required while you live in the home as your principal residence. Property taxes, homeowners insurance, HOA dues, and maintenance remain your responsibility.
Can a reverse mortgage be foreclosed?
Yes. The usual triggers are unpaid property taxes or lapsed homeowners insurance, failure to maintain the property, or no longer using the home as a principal residence.
Does making voluntary payments help?
It keeps the balance from compounding and preserves equity. Most reverse mortgages accept prepayment without penalty; confirm the terms with your servicer.
Editorial transparency
- Written by
- Michael Bennett — Mortgage writer — home financing, refinancing and interest rates
- Reviewed by
- Legamoney Mortgage & Lending Desk — Editorial desk — mortgages, home equity, and consumer credit
- How this was researched
- Based on HUD HECM borrower obligations and CFPB consumer guidance on reverse mortgage default risk.
- Corrections
- Spotted an error? Tell us and we will correct and re-date the page. See our editorial policy.
- Advertising disclosure
- Ad placements are clearly labelled and never influence editorial judgement or the ordering of comparisons.
About the author
Michael Bennett writes Legamoney's mortgage coverage: payment and amortisation maths, refinancing decisions, preapproval and underwriting, home equity and reverse mortgages. He works from HUD programme handbooks, CFPB rules under TILA and Regulation Z, and the FHFA conforming loan limits, and links to the weekly Freddie Mac survey rather than quoting a fixed rate. He works with the Legamoney Mortgage & Lending Desk.
How this article was checked
- Every factual claim is traced to a named regulator, government agency, or the provider's own published terms before publication.
- Figures that change — rates, limits, thresholds — link to the primary source that publishes them rather than being quoted as a fixed number.
- Worked examples are shown as full arithmetic so a reader can reproduce the result independently.
- Each guide is checked by the owning editorial desk before it is published, and again whenever the underlying rules change.
Covers: Mortgage payment and amortisation maths · Refinancing, break-even and closing costs · Preapproval, underwriting and affordability · Home equity, HELOCs and reverse mortgages
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Disclaimer
Reverse mortgage terms vary by product and jurisdiction. This is general information, not advice. Confirm obligations with your servicer or a HUD-approved counsellor. Consult a qualified professional before acting on any information here. Read our full disclaimer.
