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.
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
- Legamoney Editorial Team — Editorial Team — finance, insurance, lending and consumer legal topics
- Reviewed by
- Not independently reviewed.
- 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
Legamoney is an independent publisher of explanatory guides on borrowing, insurance, personal finance and everyday consumer legal questions. Articles are written by the editorial team rather than by a single named contributor, and they are built from published rules and data from regulators and government agencies — not from opinion or industry marketing. Every guide lists the sources it was written from, shows its arithmetic in full where numbers are involved, and carries publication and update dates so you can judge how current it is. We do not sell financial products, take commission on referrals, or let commercial relationships influence coverage.
How this article was checked
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- All worked examples are arithmetic shown in full, so a reader can reproduce the result independently.
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Primary sources we work from include Consumer Financial Protection Bureau, U.S. Department of Housing and Urban Development, Federal Housing Finance Agency, Freddie Mac Primary Mortgage Market Survey, Federal Reserve — Consumer Credit (G.19), National Association of Insurance Commissioners, Internal Revenue Service and Social Security Administration.
Covers: Consumer lending and mortgages · Insurance policy terms and coverage · Personal finance arithmetic and calculators · Primary-source verification and editorial standards
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.
