1,401,176 HECM reverse mortgages insured by FHA since 1989.
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Reverse mortgage question
Yes. A HECM reverse mortgage can be paid off in full or in part at any time, with no prepayment penalty. On an adjustable HECM with a line of credit, money you pay back generally becomes available to draw again, and it keeps growing. If you want to keep the line of credit open, don't pay the balance all the way to zero. Proprietary (jumbo) loans set their own payoff rules, so check yours.
Yes. You can pay off a reverse mortgage any time you want, and there's no prepayment penalty on a HECM. Most people never make a payment, and they don't have to. But some do, and there are good reasons to.
You can pay off the loan whenever you like. The most common ways it gets paid off:
When the loan is paid in full, the deeds of trust are released from your title. The lender or servicer releases the first one, and on an adjustable-rate HECM, HUD's servicer releases the second. See Why Reverse Mortgages Have 2 Notes and 2 Deeds of Trust.
You can also pay down part of your balance any time. People do it to:
Here's the part most people don't know. On an adjustable HECM with a line of credit, money you pay back generally goes right back into your available line of credit, and it keeps growing at the same rate as the loan.
So paying down your balance isn't money gone. It's money parked where you can get it again later, with growth on top. That's one reason some financial planners like the line of credit as a standby tool. Read the standby line of credit strategy.
If you want to keep your line of credit open, don't pay the balance all the way to zero. If you pay the balance to zero, your servicer may treat the loan as paid in full and close it. Ask your servicer first, and consider keeping a small balance on it.
If you send a large payment, include a short note that says you're paying down the balance and want to keep your line of credit open. Your servicer will apply it correctly.
Proprietary reverse mortgages set their own rules. Prepayment terms vary by program, and some have conditions. For example, some jumbo lines of credit have their own rules about how much you take at closing and what you can draw again after you pay part of it back. I'll show you the payoff terms of any jumbo program in writing before you choose it.
There are still no required monthly mortgage payments while you have the loan. You must continue to pay property taxes and homeowners insurance, maintain the home, and meet the other loan terms.
Thinking about paying down your balance or refinancing? Call us at 530-888-6000. I'm glad to look at your statement and help you decide whether a payoff, a paydown, or leaving it alone makes the most sense.
ZYNG Mortgage, Inc., NMLS #76801. A reverse mortgage has no required monthly mortgage payments and uses your home's equity. Fees, mortgage insurance and other costs can be added to the loan balance, and the balance grows over time as interest is added, so your equity typically decreases. When the loan becomes due, the home may need to be sold, or the loan repaid from other funds. Interest is not tax-deductible until it is paid, in part or in full. You keep title to your home and must keep paying property taxes, homeowners insurance and upkeep, and meet the other loan terms; not doing so can make the loan due and could lead to foreclosure.
This material is not from HUD or FHA and was not approved by HUD or a government agency.
HECM count at the top of this page: HUD data through September 2026 (source, opens in a new tab).
