Reverse mortgages allow homeowners aged 62 and older to convert home equity into cash while continuing to live in their homes. The most common type, Home Equity Conversion Mortgages (HECM), are insured by the Federal Housing Administration and provide flexible payout options including lump sums, monthly payments, or credit lines. No monthly mortgage payments are required, with the loan becoming due when the borrower moves, sells, or passes away. Reverse mortgages require counseling sessions and have specific eligibility requirements to protect senior borrowers.