Reverse mortgages are becoming more popular with homeowners over age 62.  The number of these loans surged 39 percent last year and the number of inquiries about reverse mortgages jumped by nearly 30 percent, according to the National Reverse Mortgage Lenders Association.

Reverse mortgages are a special type of loan designed to boost the income of senior homeowners by tapping the accumulated equity in their homes.  Instead of making monthly payments on the loan, the homeowners can receive a monthly check.  This tax-free income continues as long as the senior owns and lives in their home. The amount of monthly income a senior receives depends on the value of the property, and his or her age. If preferred, the senior can also receive a lump sum of cash, or a line of credit.

A reverse mortgage is an innovative way for senior's to tap into their home's equity to generate income.  Reverse mortgages, however, are not for everyone. Although the interest rates are low, there can be significant upfront costs. These costs, however, are rolled into the loan and not paid out of pocket. Make sure to discuss your options with a qualified reverse mortgage specialist.