The easiest way to think of a reverse mortgage is as a home equity loan. They get a certain amount of money monthly from the equity in their home. This accumulates as long as they take it, accruing interest and fees. At their deaths the loan either must be paid off, the home sold or the mortgage renegotiated by the heirs. The only difference between a reverse mortgage and a home equity loan, other then usually higher interest and fees, is that unlike a home equity line of credit (HELOC) the reverse mortgage is not payable until the parents pass away.