Whether seeking money to finance a home improvement, pay off a current mortgage, supplement retirement income, or pay for healthcare expenses, many older Americans are turning to reverse mortgages. They allow homeowners age 62, or better, to convert part of the equity in their homes into cash without having to sell their homes or take on additional monthly bills.

In a traditional mortgage, you make payments to the lender each month. However in a reverse mortgage, you receive money from the lender and do not have to pay it back for as long as you live in your home. Instead, the loan must be repaid when you die, sell your home, or no longer live there as your principal residence.