On a standard HECM reverse mortgage, you typically do not make required monthly principal-and-interest payments while you live in the home. You must still pay property taxes, homeowners insurance, and keep the home maintained — those are not optional.
The headline benefit of a HECM is that required monthly principal-and-interest payments stop while you occupy the home as your primary residence. Instead of sending a mortgage check each month, the loan balance grows as you receive proceeds and as interest and mortgage insurance accrue on the outstanding balance.
That does not mean zero housing costs. Property taxes, homeowners insurance, HOA dues if applicable, and routine maintenance remain your responsibility — and falling behind on taxes or insurance is one of the most common default triggers on reverse mortgages. Budget for those charges as non-negotiable expenses.
You may also choose to make voluntary principal payments at any time with no prepayment penalty. If the financial assessment shows tight residual income, a life-expectancy set-aside may reserve part of your proceeds to cover future taxes and insurance — Ryan and Steve can explain whether that applies to your scenario.
Even without a monthly mortgage bill, these costs continue — plan for them before you close.
County and municipal taxes still come due on schedule. Escrow is not automatic on most HECMs — set aside funds or enroll in a tax installment plan so bills do not pile up.
Keep your policy active and notify your servicer of renewals. A lapsed policy can trigger default notices and force-placed coverage at higher cost.
If your property has association dues, those remain your obligation. Unpaid HOA assessments can lead to liens that complicate the reverse mortgage.
Voluntary payments are allowed anytime and can slow balance growth. They are never required while you live in the home, but they can preserve equity for you or heirs.
Practical steps to stay current on the charges that matter most after closing.
Step 1
Write down tax due dates, insurance renewal amounts, and HOA schedules. Knowing the totals helps you avoid surprises when no mortgage escrow holds funds.
Step 2
Use autopay or reminders for insurance renewals and tax installments. Small lapses can escalate into default notices on a reverse mortgage.
Step 3
If your financial assessment flags tight cash flow, ask whether a life-expectancy set-aside makes sense to reserve proceeds for future property charges.
Step 4
Maintain a cushion for maintenance and unexpected repairs. A well-maintained home protects both your comfort and your loan compliance.
Related guides to help you understand reverse mortgages and next steps.
Property charges you must still pay — and LESA options.
Why unpaid taxes and insurance are the biggest default risks.
When the balance comes due and how heirs handle payoff.
Ask Ryan & Steve about set-asides and property-charge budgeting.
2MG Daily
Recent articles on reverse mortgages, home equity, and retirement financing.
Jul 2, 2026 • 2MG Daily
Read article →
Jul 20, 2026 • 2MG Daily
Read article →
On a standard HECM, you typically do not make required monthly principal-and-interest payments while you live in the home as your primary residence. The loan balance grows over time as interest and fees accrue.
Property taxes, homeowners insurance, HOA dues if applicable, and home maintenance remain your responsibility. Falling behind on taxes or insurance can put the loan in default — those are not optional charges.
Yes. Most HECM servicers allow voluntary payments at any time with no prepayment penalty. Paying down the balance can preserve equity for you or your heirs, though it is never required while you occupy the home.
No. While required P&I is typically waived, property charges and maintenance costs continue. This page is educational — not a commitment to lend or a guarantee of specific payment amounts.
Ryan & Steve can map your property charges, set-aside options, and voluntary payment flexibility before you decide — not a commitment to lend; subject to credit and property approval.