The big rise in home values during the last several years has brought about record growth in these products, 77 percent more over the previous year. They give homeowners an income stream or a lump sum that they don't have to repay until they sell their home or die.

Projecting big growth opportunities in the future, firms such as IndyMac, Seattle Mortgage, and Bancorp have been cutting costs on reversemortgages and offering special deals. Bank of America and Countrywide Financial expect to roll out such programs later this year. The competition is expected to additionally bring down costs. The Department of Housing and Urban Development, which insures most reverse mortgages, wants to lower origination costs and mortgage-
insurance premiums homeowners pay.

The AARP Education Project reports that many forces are in play to bring costs down for consumers. It recommends that people wait for a time if they are thinking about a reverse. To qualify for a reverse mortgage, a homeowner has to be at least 62.