What is a Reverse Mortgage? A reverse mortgage is a loan against your home that you don’t have to repay as long as you live there. With a reverse mortgage, the lender sends you money, and your debt (the amount you owe) grows larger as you keep getting cash advances. That’s why reverse mortgages are called rising debt, falling equity loans. As your debt grows larger, your equity (the value of your house minus what you owe) generally gets smaller. However, your equity could inc