Do I make monthly payments on a reverse second mortgage?
By AbeAugust 12, 2026Reverse 2nd Mortgages
Short Answer
Some proprietary reverse second mortgages do not require monthly principal-and-interest payments on the second lien. You must still make any required first-mortgage payment and pay taxes, insurance, and property charges.
Full Detailed Answer
Because required payments are not being made on the reverse second, interest and applicable charges generally accrue to the balance. That means the amount owed can grow and remaining equity can decline over time.
The loan becomes due under the product's maturity rules, commonly after a sale, death of the last borrower, or permanent move from the home. Exact terms must be reviewed in the loan documents.
A no-required-payment structure can improve monthly cash flow, but it is not the same as a no-cost loan. Ask for projections showing how the second-lien balance and total home equity may change.
What Abe Will Review
- Payment due on the existing first mortgage
- No required P&I on qualifying second-lien products
- Accruing interest and charges
- Maturity events and repayment
Explore This Loan Program
This question is related to one of our loan programs. Learn more about how it works and whether it fits your situation.
Explore reverse mortgagesRelated Questions
Have a question about your situation?
Every situation is different. Let's get the right solution for you.