How do reverse mortgages work?

If I am 65 years old, my house is worth $950,000 and i have a $400,000 mortgage on it - can I qualify? What would happen to my existing mortgage? How exactly does this type of loan work?
Update: Ok, let's say I own it free and clear (I can sell my house, pay off the mortgage and with the $600,000 buy a cheaper house free and clear. How does the reverse mortgage work?
Update 2: I know the general concept - you don't have to make payments and the equtiy in the home gets taken away, but how does it work? Does anyone know? Example if the interest rate is 5%, on what amount is it calculated, how do you determine how many years you have to make the loan last, how much equity is left at the end... show more I know the general concept - you don't have to make payments and the equtiy in the home gets taken away, but how does it work? Does anyone know? Example if the interest rate is 5%, on what amount is it calculated, how do you determine how many years you have to make the loan last, how much equity is left at the end of death of the homeowner? What are the basic concepts to calculate this?
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