Many cash strapped seniors, rich in home equity are considering taking out a reverse equity mortgage, the opposite of a traditional mortgage. You borrow against your home's equity, but instead of paying the lender back, the bank makes payments to you.

Unlike a regular mortgage, over the life of the reverse equity, your debt grows. But as long as you continue to live in the home you don't owe anything. The loan is paid off when the house is sold, usually when you die.

Only homeowners aged 62 or older quality.

However, reverse mortgages aren't cheap. There are closing fees, service fees, accrued interest and continuing insurance costs.

The most widely used REM is insured by the Federal Housing Administration with maximum loans for 2006 ranging from approximately $200,000 to $362,000.

You should do some math before you agree to a reverse equity mortgage, so be sure to check out the handy calculator at www.reversemortgage.org.

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