The difference between the workings of a conventional mortgage and a revers is quite significant,. With a conventional mortgage you are making payment, and with a reverse mortgage you are receiving them. The only catch is the payments one receives is taken from the value in the home.

So how is this possible, well because the payments people receive from a revers mortgage are still part of a mortgage. It still has to be payed back at some point. But no payments need to be made so long as the person responsible for the revers mortgage remain in the home. If said person where to move out or die however, the loan must be repaid at that time.

So to recap a reverse mortgage is essentially exactly what it sounds like. A mortgage, well reversed.