How Long Does a Reverse Mortgage Last?

When you take out a traditional mortgage, you know exactly how long it will last. Usually, it’s either 15 years or 30 years. But what about reverse mortgages?

The short answer is that there’s no pre-determined time limit for a reverse mortgage. With a traditional mortgage, you make payments toward the balance each month. However, for a reverse mortgage after the owner dies or moves out of the home the loan would need to be repaid. Here’s a closer look at when a reverse mortgage ends and how the lender is repaid when it does.

How Long Do Borrowers Typically Keep a Reverse Mortgage?

While there’s technically no expiration date, the average reverse mortgage lasts between 7 and 10 years before it’s repaid.

That doesn’t mean the borrower has to move or sell at that point — it’s simply the period when most reverse mortgages naturally end due to life events like downsizing, health changes, or inheritance transitions.

In fact, many borrowers open a reverse mortgage early in retirement as a long-term safety net. Even if they never draw the full amount, the line of credit option can continue to grow over time, providing increasing access to funds as they age.

This flexibility makes a reverse mortgage unique: it adapts to your timeline, not the other way around.

When Does a Reverse Mortgage End?

Reverse mortgages were designed to allow seniors to stay in their homes through their retirement. This is sometimes called “aging in place.” Because there’s no way to know when a borrower will die, reverse mortgages don’t have a set term length.

However, in some circumstances, a reverse mortgage is terminated while the borrower is still alive. These are four common situations when a reverse mortgage ends, and the loan balance becomes due:

The Borrower Dies

Once a reverse mortgage borrower dies (or if there are two borrowers, once the last surviving borrower dies), the reverse mortgage ends, and the loan balance must be repaid.

The Borrower Sells the Home

Most of the time, reverse mortgage borrowers intend to remain in their homes for the rest of their lives. However, plans can change. If a borrower sells the home, the reverse mortgage ends. The borrower then uses the proceeds from the sale of the home to pay off the mortgage balance.

The Borrower Moves Out Permanently

Even if a borrower still owns the home, the reverse mortgage will be terminated if they permanently move out. Most loan contracts specify that if the borrower does not live in the home for a year or more, they are considered to have permanently moved out.

For instance, if a borrower intended to age in place but needs to move into a nursing home, the reverse mortgage will end.

The Borrower Fails to Meet Loan Obligations

To keep receiving payments (and to prevent the loan balance from becoming immediately due), a borrower must follow all loan requirements. If they don’t, the reverse mortgage will default.

These are some of the most common ways that borrowers fail to meet their obligations:

• Not paying property taxes
• Not keeping the property in good condition
• Not paying homeowners’ insurance premiums

Defaulting on a reverse mortgage has the same consequences as defaulting on a traditional mortgage. The lender can foreclose on the home and sell it to pay for the remaining loan balance.

What Happens After You Move or Pass Away?

When a reverse mortgage ends, your heirs or estate have a few options for what to do next:

1. Sell the home – The most common choice. The sale proceeds go toward paying off the reverse mortgage balance, and any remaining equity stays with your heirs.

2. Keep the home – If your heirs want to keep the property, they can pay off the balance (often by refinancing into a traditional mortgage).

3. Walk away without owing more – Because reverse mortgages are non-recourse loans, if the balance exceeds the home’s value, your family is never on the hook for the difference.

Lenders generally allow a six-month window for the estate to decide, with extensions possible. This ensures families have time to grieve, organize, and make the best financial decision without being rushed.

How Is a Reverse Mortgage Paid Off?

Reverse mortgages don’t require you to make monthly payments during the loan term. Instead, once the mortgage ends, the balance is due immediately. Typically, your heirs will sell the home, use the proceeds to pay off the remaining loan balance, and keep the rest of the proceeds.

But what if your heirs would rather keep the house? In this case, they would need to pay the loan balance to the lender themselves. Once the reverse mortgage has been paid, your heirs may take possession of the home.

Example: How a Reverse Mortgage Ends in Real Life

Let’s say John and Mary, both 72, take out a reverse mortgage to supplement their retirement income.

● Year 1–10: They receive monthly payments that help cover living expenses and avoid dipping into savings.

● Year 11: Mary passes away, and John decides to move closer to family.

● The Outcome: John sells the home for $420,000. The reverse mortgage balance is $310,000. The proceeds from the sale pay off the loan, and John keeps the remaining $110,000 in equity.

In this example, the reverse mortgage did exactly what it was meant to do — provide financial freedom while still leaving value behind for the homeowner.

What if the Loan Balance Is More Than the Home’s Value?

If the home’s condition suffers or its value drops unexpectedly, the balance due on the reverse mortgage might be more than the value of the home. Fortunately for borrowers and their heirs, these loans are “non-recourse” loans. 

This means that borrowers and heirs will not have to pay the lender more than the proceeds of the sale of the home. They also have the option to sign the home over to the lender. However, it’s worth noting that it’s extremely uncommon for a home to be worth less than the balance on a reverse mortgage. 

There is one caveat here. If your heirs decide they want to keep the home, they will owe the lender the full balance of the loan. This is true even if the loan balance is more than the home’s value.

Can You Pay Off a Reverse Mortgage Early?

Yes — you can pay off a reverse mortgage early at any time without penalty.

Some borrowers choose to do this if they downsize, refinance, or simply want to close out the loan. The payoff amount will include the principal borrowed plus any accrued interest and fees to date.

There’s no prepayment penalty, so you stay in control. Whether you want to repay the balance in a lump sum or over time, you can do so without restriction.

This flexibility is especially helpful if your financial situation changes — for instance, if you inherit money or sell another property and want to reduce the loan balance.

Is a Reverse Mortgage Right for Your Retirement?

If you’re looking forward to a long, peaceful retirement in your own home, a reverse mortgage might be just what you need. At South River Mortgage we take the time to help you decide whether a reverse mortgage is truly your best option.

Ready to learn more? Get an instant quote here today (totally free) to get started. Then call 855-212-9114 to discuss your options with our licensed reverse mortgage experts. They will answer all your questions, no pressure or obligation.

FAQ: How Long Does a Reverse Mortgage Last?

How long can a reverse mortgage stay open?

As long as at least one borrower lives in the home and meets the loan requirements (taxes, insurance, and maintenance), the reverse mortgage can last indefinitely.

What’s the average duration?

Most reverse mortgages stay active for 7–10 years, but some remain open for 20 years or more. There’s no fixed term.

Does the loan end automatically at a certain age?

No. Your age affects how much you can borrow, not how long the loan lasts.

What if I move temporarily?

If you move out for more than 12 consecutive months — such as to a care facility — the loan may be considered due. Short-term absences (vacations, hospital stays, etc.) are fine.

Can I refinance my reverse mortgage later?

Yes. If home values rise or rates improve, you can refinance your reverse mortgage into a new one to access more equity.