Final answer:
The borrower of a HECM loan must pay interest, property charges (HOA fees, real estate taxes, homeowner's insurance), and mortgage insurance premiums, with principal repayment deferred until the home is sold or the borrower leaves the property.
Step-by-step explanation:
The borrower of a Home Equity Conversion Mortgage (HECM) loan, often known as a reverse mortgage, has certain financial responsibilities. These include paying the interest, continuing payment of property charges such as homeowners association (HOA) fees, real estate taxes, and homeowner's insurance, and maintaining mortgage insurance premiums. The principal of the loan typically does not need to be paid until the borrower sells the home, moves out, or passes away. It is important to note that the escrow account may be used to handle property taxes and homeowner's insurance to simplify these payments for the borrower.