Communicating the benefits of reverse mortgages to elder home owners and their children has proven to be a tough challenge. Indeed, there are still thousands, if not millions, of seniors who have never heard of mortgages that pay you, let alone know how they work.

But the best salespeople are those who have already tried a product and can tout its advantages and disadvantages. And according to research by the Department of Housing and Urban Development, the majority of folks who have obtained a federally-insured reverse mortgage are pleased with the concept and the way it has changed their lives for the better.

"Many participants were very enthusiastic about the impact (the program has) had on their lifestyles," according to the study. "They are no longer concerned about their financial well-being and are enjoying retirement."

A reverse mortgage is a loan that allows eligible senior home owners to covert the equity they've built up over the years into tax-free income without having to give up ownership or occupancy in the property. It's called a reverse loan because rather than you paying the lender, the lender pays you either in one lump sum or in monthly installments.

Loan amounts are based on the value of the property, your current age and your current life expectancy.

The loan is particularly appropriate for house-rich but cash-poor seniors who have their wealth tied up in their homes but are forced to subsist on fixed-incomes. But borrowers can use the funds any way they see fit to pay for home improvements or repairs, health care, prescriptions, travel. You name it, you can do it. It's your dough.

Better yet, the loan is not repayable until the borrower passes on, sells the house or permanently moves out. The loan is then repaid from the proceeds. But under no circumstances will the borrower owe more than the value of the property. And if there is any money left over, it goes to the owner or his heirs.

HUD's research was based on feedback from focus group discussions with some of the more than 38,000 elderly owners who have obtained a federally-insured home equity conversion mortgage over the last decade. The sessions were held in three cities Providence, R.I.; Seattle, and New Orleans.

More than three out of four participants said they were either "satisfied" or "very satisfied" with their loans. But just as important, the study noted the strong performance of the HECM program and the fact that closing costs have declined considerably: