Think of it a bit like selling your house, but slowly...! Its usually only done by seniors who are in retirement and want to slowly sell off their home (and not leave it for their kids).
However there are two types of Reverse Mortgages... large lump sum payments or multiple payments (which can set up monthly, thus giving the senior more money for their monthly budget). Its really for seniors who find themselves stretched for cash as they get older and find gasoline/food/electricity/health care costs are higher than they predicted.
The Reverse Mortgages adds a lien to the property so when the property is eventually sold (ie. the old couple dies or moves somewhere else) then the bank / lender gets their share of the equity from the sale of the property.
There is also the matter of how much you can actually get. It really depends on the interest rates different banks and lenders are offering, where you live (real estate prices and interest rates vary by state and city), thus making it tricky to get an estimate on a reverse mortgage loan. Not an actual loan, just an estimate in an effort to calculate both the value of your home and the amount you can actually get either all at once or on a monthly basis.
If you later find / save / inherit money then you can also pay off the loan immediately. There is no required duration.
Check out more real estate news at My Search for a Home.
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