A reverse mortgage is a type of loan that typically allows homeowners, age 62 or over, to borrow against the value in their homes. This type of mortgage is insured by the Federal Housing Administration (FHA) and is otherwise called Home Equity Conversion Mortgage (HECM). Equity refers to the amount your home is currently worth, minus the amount of any existing loans on your home. It is called a “reverse” mortgage because, instead of making payments to the lender, you would receive money from the lender. The money you receive, and the interest charged on the loan, increases the balance of your loan each month. It is important to understand, over time, the total loan amount due will be growing as money is borrowed.