A reverse mortgage loan functions similarly to a standard mortgage by allowing homeowners to borrow against their home’s equity. However, unlike traditional home loans, a reverse mortgage does not require monthly payments. Instead, interest and fees accumulate each month, causing the loan balance to grow over time.

Repayment is typically due when the homeowner no longer occupies the property. Homeowners are still responsible for paying property taxes and insurance, living in the home as their primary residence, and ensuring that the property remains well-maintained while under a reverse mortgage loan agreement.