<prompt> Human: I keep seeing these cheesy commercials targeted at retirees about getting a Reverse Mortgage to access the equity in their home. They talk about being able to pay off credit cards, do home improvements, all while eliminating a monthly mortgage payment. Um, what? Why do they make it sound like this is free money with no downside? It feels like a bit of a scam targeting elderly folks, but I dont really understand how this works.  <response>: A reverse mortgage is taking a loan from a bank with the home being collateral. Its a federally insured program that started in the 1980s. If you are 70 years old and broke, you can take out a loan against the value of your house and not make payments on it. The bank makes payments based on the value of the home. The loan becomes due when you sell the house or die. Your estate can pay off the balance or you can hand over the home to the bank. This program allows old people to stay in their home but have money to live out their last years, with the eventual reality that the bank will reclaim the house after they die instead of it being passed own to heirs. 