I getting very tired of these Fred Thompson Reverse Mortgage commercials.

[Lint Head]

I sincerely doubt a rich right wing movie actor like him has actually taken out or needs a reverse mortgage. He actually says, "Take it from me..." As if he knows from personal experience a reverse mortgage is the thing to do. I know some of you may know someone who has done this or maybe you have done this yourself. It's not something one should do lightly. If someone needs a check every month because they have little income it could be an option.

Here's the deal. It's an annuity. It's the same thing as you taking your savings, giving it to a financial institution or insurance company and they give you a check based on the amount you give them divided by the average lifespan. $50,000 will get you about $300.00 a month. If you have an expensive house that is paid for, say $500,000, you would get quiet a lot. The thing is they are betting you will die before the money runs out. They also make interest.

If you have an expensive house that's paid for you're rich already.

People who do this give up control of their property and equity. In this economy it's a the wrong thing to do.

"A reverse mortgage should be the last option, not the first, when all else has been exhausted. If you're talking about a family with younger members of means, it is generally better to have them financially help out aging relative than to have a broker or salesperson take advantage of the senior with a reverse mortgage." Clark Howard