In a regular mortgage arrangement, you can take out a loan to be able to purchase your own home.  In a reverse mortgage loan option, you receive money from the reverse mortgage lender in exchange for the value of your home equity (or your home, if you own it entirely).

Basically, the reverse mortgage lets you convert home equity back to cash for use in daily living, as retirement income or as money for medical expenses, grand vacation, your children’s school tuition, and other big expenses.

The reverse mortgage is exactly the reverse of the regular home mortgage: 

• Regular Home Mortgage
  You convert cash to home equity; for people starting out to build their home equity.

• Reverse Home Mortgage
  You convert home equity back to cash; for people who wish to enjoy their home equity investment.
   

Reverse Mortgage vs. Home Equity Loans
A reverse mortgage loan is somewhat similar to the home equity loan that you may have heard about or taken out before. 

In a home equity program, your home equity is collateral for a lump sum loan or line of credit.  After you get your loan, you are expected to commence with your monthly payments.

In a reverse mortgage arrangement, though, you will get money from your home equity, but you are not expected to begin paying immediately.