How to pay off reverse mortgage?

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Paying off a reverse mortgage is an important financial goal for many homeowners. A reverse mortgage allows homeowners aged 62 or older to convert a portion of their home’s equity into loan proceeds, which are typically paid out in monthly installments. While reverse mortgages can provide financial flexibility, it’s crucial to have a plan in place to pay off the loan. In this article, we will explore some strategies to help you pay off your reverse mortgage and secure your financial future.

Understanding Reverse Mortgages

Before delving into the strategies for paying off a reverse mortgage, it’s essential to understand how these loans work. With a reverse mortgage, homeowners receive loan proceeds based on the value of their home, their age, and the interest rate. The loan balance increases over time as interest accrues, and the loan is typically repaid when the homeowner sells the home, moves out, or passes away.

Strategies to Pay Off a Reverse Mortgage

1. Make Regular Payments: While reverse mortgages do not require monthly payments, making voluntary payments can help reduce the loan balance over time. By paying down the principal, you can minimize the interest that accrues and potentially pay off the loan sooner.

2. Refinance the Reverse Mortgage: If interest rates have decreased since you obtained your reverse mortgage, refinancing the loan may be an option. By refinancing at a lower interest rate, you can reduce the amount of interest that accumulates over time, potentially saving you money and helping you pay off the loan faster.

3. Use Other Assets: If you have other assets, such as savings, investments, or a retirement account, you may consider using them to pay off your reverse mortgage. By using these assets strategically, you can eliminate the loan balance and free up your home’s equity.

4. Sell the Home: Selling the home is a common way to pay off a reverse mortgage. When you sell, the proceeds from the sale can be used to repay the loan balance. If the home sells for more than the loan balance, you can keep the remaining equity. However, if the home sells for less, the reverse mortgage insurance will cover the difference.

5. Downsize or Relocate: Another option is to downsize or relocate to a more affordable home. By moving to a smaller or less expensive property, you can use the proceeds from the sale to pay off the reverse mortgage. This strategy can also help reduce your ongoing housing expenses.


Paying off a reverse mortgage is an important financial goal that can provide peace of mind and financial security. Whether you choose to make regular payments, refinance the loan, use other assets, sell the home, or downsize, it’s crucial to have a plan in place. Consider consulting with a financial advisor or reverse mortgage specialist who can provide personalized guidance based on your specific circumstances.


– Reverse Mortgage Funding LLC:
– U.S. Department of Housing and Urban Development:
– Consumer Financial Protection Bureau: