Is A Reverse Mortgage Right for You? These days, that hype is about reverse mortgages so check it out to make sure it is not fraud.

A good percentage of reverse mortgage products fall flat. But every once in a while, one will take hold in a way that even the experts didn’t see coming. It’s time to look under the hood, kick the tires and really get a sense of whether that particular mortgage product is for you before you buy into all the hype.

Designed for people 62 and over, these reverse mortgages enable you to have a bank buy back your home while you’re still living in it. It provides an income that you can opt to receive in a lump sum, a monthly payment or a line of credit that you draw upon when necessary.

Sounds kind of like winning the lottery, right? Not quite. You have to pay the money back (plus interest) when you vacate or sell the home, and there are fees involved. Still, these mortgages do have a place, and they’re rapidly finding it: According to a recent report by the AARP, while only about 1 percent of older homeowners have a reverse mortgage, there were 107,000 loans made in 2007 compared to only 6,600 in 2000.

Do your due diligence before you (or your parents) join the reverse-mortgage frenzy and perhaps get caught in a scam.