Reverse mortgages can be a good financial solution for people over 62 who've paid off their mortgages or have significant home equity and want to spend the rest of their lives in their home. Reverse mortgages can provide tax-free income that shouldn't affect borrowers' Medicare or Social Security benefits (check with a tax advisor, though, because this can vary).

They can use the payments for day-to-day living expenses, healthcare costs, emergency funds, or anything else they choose.