Reverse mortgages were largely created for seniors who are cash-poor and house-rich. This type loan allows seniors who are 62 or older to borrow against their equity.

But unlike traditional home loan products, no payment is due on a reverse mortgage until the homeowner moves, sells or dies.  If the home is sold, any remaining equity after the loan is redistributed to the borrower or to the borrower's estate. The repayment amount cannot exceed the value of the home.

To qualify for this type loan, you have to own your home outright or have a low enough mortgage balance that can be paid off at the closing with the proceeds from the loan.

For more information on reverse mortgages, visit these websites: AARP (www.aarp.org/money/revmort) HUD (www.hud.gov/buying/rvrsmort.cfm)