Dale Buckner, a local certified financial planner at Asset Planning offers some additional information to help you decide if it's right for you.
The loans allow seniors to lock in the value of their homes and live there for the rest of their lives.
"It allows them to live a more comfortable life if they are using it for retirement income." Buckner also says it helps pay for home improvements, medical expenses, home health care and anything you want to use the money for. It's tax free income without any restrictions.
He says the major disadvantage to seniors is the high closing cost.
"They are higher than the normal mortgage and that is because you are purchasing a form of insurance inside of the closing cost."
But, he's quick to add the money doesn't come out the seniors pocket and the insurance protects you in case property values drop and your home isn't worth as much as the loan. He says this insurance will cover the cost and eliminate debt. Another disadvantage is if you wanted to leave your home to family members, they will have to repay the loan to keep the house.