What exactly is a reverse mortgage? How does it work and who does it benefit? Also known as the HECM or home equity conversion mortgage in the States, the premise of reverse mortgages is simple enough - it's a loan against your house, for people 62 years of age and older but unlike traditional mortgages, there are no monthly payments to be made while you're alive. It's a great way for seniors who have accrued home equity to supplement their retirement.