A reverse mortgage is a loan that allows homeowners 62 years of age or older to borrow money against the equity in their home without having to make monthly payments. The loan is called a reverse mortgage because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower. There are two main types of reverse mortgages, The Term reverse mortgage and the home equity conversion mortgage. Term reverse mortgages provide a set amount of money paid out over a fixed period, such as 10 to 15 years. HECM reverse mortgages provide a line of credit that you can draw on as needed.