Local banks and mortgage companies are pushing a unique mortgage loan that sounds more like you just won the lottery.

Instead of making monthly payments, you receive monthly payments and you don't have to pay it back until you sell you home. It's called a reverse mortgage.

But proceed with caution.

Reverse mortgages have been around for some time, but they're being heavily market right now, in part because of all the long-time homeowners who are sitting on a gold mine in equity.

The loans are marketed to homeowners who may have limited income, but a wealth of equity in their homes. You must be at least 62 years old.

Here's how it works.

Say you have $100,000 in equity in your home.

You can take out $50,000 - or any amount you choose - and pay nothing back for as long as you live in the house.

The bank gets its money when your house is sold, either when you move or after you die.

"You can get a lump sum payment from a reverse mortgage, you can get monthly payments from a reverse mortgage, you can get a home equity credit loan from a reverse mortgage," said consumer advocate Lauren Moughon.

It's a potential windfall for older homeowners in need of cash, but Moughon and other advocates are concerned that heavy marketing is sending the wrong message.

It concerns me greatly that these reverse mortgages are being advertised as a way to purchase retirement luxuries," said Moughon.

Dream cruises and luxury vacations are risky reasons to take out a reverse mortgage.

"A lot of people only have their homes as their nest eggs, as their life savings, as their safety net if something should happen to them." Moughon explained.

"Really, people should be thinking about their home equity as a safety net. They should be thinking about it if they should come to need long-term care in a nursing home, or someone to come into their home to care for them."

The interest rates for reverse mortgages can be higher than a conventional loan. The fees can also be higher. And, in a lot of cases, there may be other ways to get money without having to put your house on the line.

"And it's incredibly important that people understand that if you get a reverse mortgage and don't continue to pay your property taxes on time, you can lose your home," Moughon said.

Reverse mortgages can offer a great financial solution for many seniors who need money and have equity in their homes.

But as with any major commitment that effects the financing of your home, it is crucial to shop around, compare costs understand the risks and know your options.

For more information:

Information on How Reverse Mortgates Work