Throughout their working years, most people try their best to build up a retirement fund -- an asset that will generate income once their regular paychecks stop. But for many people, that fund can seem inadequate. Now, thanks to the increased popularity of reverse mortgages, many people age 62 and older are tapping into another asset to help fund their retirement -- their house, making it not just a place to live in but also an asset to live on.

"Reverse mortgages have become very popular in recent years," says a reverse mortgage specialist at Fifth Third Bank. In fact, according to the U.S. Department of Housing and Urban Development (HUD), 60 percent of all reverse mortgages were written since 2006, and their demand continues to grow.

The benefits of reverse mortgages
"A reverse mortgage is essentially a loan that gives people access to the equity in their home without them having to sell it and move out," says Fifth Third Bank. "The lender makes payments to the homeowner from the equity they have in their home, essentially the opposite process of a traditional mortgage."

A reverse mortgage is an excellent option for seniors to improve their quality of life. The cash flow can be used for anything -- to pay off existing debts, finance long-term care or a trip around the world.

Homeowners retain the title and full ownership of their home. And, unlike earned income, funds from a reverse mortgage do not affect Medicare or Social Security benefits. This type of loan can even be obtained when a first mortgage exists. (In these cases, the reverse mortgage must payoff the existing lien.)

People who choose a reverse mortgage have several options for receiving their loan. They can receive it as a lump sum; as fixed monthly payments; as a line of credit they can access anytime; or as a combination of these options.

Stipulations of a reverse mortgage
Reverse mortgages are available only to people age 62 and older, and they can only be taken out on their primary residence. The loan comes due after the homeowner sells the home, the remaining homeowner has died, or a year after the homeowner has moved into a care facility on a permanent basis and is not expected to return to the home.

When repaying the loan, homeowners or their heirs may pay the balance due on the reverse mortgage and keep the home, or they can sell the home and use the proceeds to pay off the reverse mortgage.

"In many cases, reverse mortgages enable seniors to maintain their quality of life by allowing them to remain in their home where they are comfortable and familiar with their routines. I encourage seniors and their family members to learn more about this tool by talking with a reverse mortgage specialist or a financial advisor," says Fifth Third Bank.

For more information on reverse mortgages, contact Fifth Third at (866) 475-4201 or visit the Fifth Third website.

Subject to qualification and credit review. Consult your legal and tax advisors on the risks and benefits of a reverse mortgage. Mortgage products offered by Fifth Third Mortgage Company.