payment of interest on a reverse mortgage usually is not tax deductible. If you drill into the US tax code, you will learn that IRS treats reverse mortgage proceeds as home equity debt, rather than conventional mortgage debt. While this distinction might sound trivial, it actually has serious implications. You can write off home equity loan interest only on that portion of the debt you used to renovate or make substantial improvements to your home.
you actually have to pay the interest. the usual RM allows the interest to accrue.
