Maybe what was planned for retirement isn't working out exactly as hoped. Fixed income doesn’t change as the cost of living goes up.

A homeowner's first thought may be to sell their home and scale back. But if it's the home they planned on retiring to, the one they worked your whole life to afford, selling the home is not what you really want to do. If staying in the home they love is important, exploring the option of a reverse mortgage could be the key to making it all work.

But how can you help your loved one realize that a reverse mortgage could be right? Getting educated about all the available financial options is the best place to start. With a reverse mortgage, one of the very first steps is financial counseling. It's required for everyone and can give the peace of mind needed to make large financial decisions.

Qualifying for a reverse mortgage (also known has a HECM or home equity conversion mortgage) may be simpler than you or your family would expect. First off, all borrowers on a reverse mortgage must be 62 or older. Credit and income are not qualifying factors for reverse mortgages. Unlike conventional mortgages, the reverse mortgage is different in that it pays you, and is available regardless of your current income. Credit is not considered either. Sometimes a reverse mortgage can be what saves a senior homeowner who is close to foreclosure.

There are even options in how a homeowner can receive their payments from their home's equity.

They can choose:

1. Term option – receive equal monthly payments for a fixed period of time as chosen by the homeowner.

2. Tenure option – receive equal monthly payments for as long as the homeowner occupies the home.

3. Line of credit option – Draw cash (like a credit line or credit card) in amounts chosen by homeowner for as long as the homeowner occupies the home.

4. Or, any combination of the above – a homeowner can really customize their reverse mortgage to fit their lifestyle and needs.

Many people are worried about what happens to the home and equity once the homeowner passes on. It's no different from a conventional mortgage. A reverse mortgage is a loan against the property, and only becomes payable when the last remaining borrower sells the homes, permanently leaves the home or passes away. The title remains in the name of the borrower and the lender is only repaid the remaining balance or home value; whichever is less. If the borrower is deceased, the home will go to the heirs of the borrower. They can sell the home or do a conventional refinance. See Reverse Mortgage FAQs.

Before moving ahead with a reverse mortgage, I recommend that you consult your financial advisor, tax advisor and/or a reverse mortgage expert to review your specific situation.

For a free, no obligation quote, contact One Reverse Mortgage toll free at 800-251-9080.