What expenses must I keep paying with a reverse mortgage?
By AbeAugust 12, 2026Reverse Mortgages
Short Answer
You generally must continue paying property taxes, homeowners insurance, association charges, and the cost of maintaining the home. A reverse mortgage removes the required monthly principal-and-interest payment, not the costs of homeownership.
Full Detailed Answer
The property must remain the borrower's principal residence under the loan's occupancy rules. Taxes and insurance must stay current, and the home must be maintained to required standards.
If the lender determines that property charges may be difficult to sustain, part of the available proceeds may be reserved to pay certain expenses. This reduces the amount immediately available to the borrower.
Before closing, build a realistic budget for taxes, insurance increases, HOA dues, repairs, utilities, and daily living costs. The goal is not just to close the loan; it is to make the home sustainable.
What Abe Will Review
- Property taxes
- Homeowners and flood insurance when required
- HOA or condominium charges
- Repairs and maintenance
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