A reverse mortgage can be a fantastic financial solution for many seniors who find themselves strapped for cash, but few people really understand how it works. Just like any decision you make about your home and money, it’s important to know your options and what these options can mean for your personal situation.

So here’s the low-down: a reverse mortgage is a type of home loan that allows folks who are at least 62 years old (sorry young’ns, that’s a requirement) to get cash from the equity in their home. What makes this loan different from other mortgages however, is that repayment isn’t required until the person leaves the home.

You can get cash as a lump sum, a monthly payment or a line of credit that you can use at your leisure. The amount you can borrow depends on your age, appraised home value and current interest rate. The best part is that you don’t have to repay the loan until you leave your home. If you move, you pay back the amount of money you’ve taken out plus interest. If you pass away, your estate is responsible for making good on the loan. In both cases, money from the sale of the home can cover the debt, as you’ll never owe more than your home’s value.

To qualify for a reverse mortgage, you must be at least 62 years old, occupy the home as your primary residence (at least for the majority of the year) and either own your home outright or carry a relatively low mortgage balance. That balance must also be paid off by the cash you get from the reverse mortgage.

If you meet the requirements and need extra cash to make ends meet, a reverse mortgage might be the ideal solution. To find out more, read what CNN’s Gerri Willis advises on reverse mortgages or contact a reputable Home Loan Expert.

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