Since retirement accounts have been losing value, experts say there is a growing demand for reverse mortgages.
Reverse mortgages allow homeowners, 62 or older to borrow against the equity in their homes.
The loan does not have to be paid back until the home is sold, or the borrower dies.
Brenda Kelley, Director of AARP here in Connecticut says the reverse mortgage may be the right option for some seniors but it really only makes sense for those who need the money to cover living expenses or long term care, 'not flashy vacations, not just for extra cash, and certainly not to invest.
Experts say with an increase in demand for reverse mortgages, there's been an increase in fraud as well.
Prior to applying for the federally insured loans, borrowers are required to get 'reverse mortgage counseling' from someone who has been federally certified to do so.
The AARP Foundation provides a wealth of information about reverse mortgages, including reverse mortgage counseling. This information is available at www.aarp.org/revmort or 1-800-209-8085.
