If you’re over the age of 62 and in need of some extra cash flow in your retirement, you may be considering a reverse mortgage. Borrowing money from your home equity might sound like a good idea, but is it actually a wise move financially? Here are some things to consider when making the decision to take out a reverse mortgage on your home.

Reverse mortgages have been around for a long time, but in recent years they have become more popular. Though some experts consider a reverse mortgage a last resort of sorts, depending on your own financial situation, a reverse mortgage may be helpful.

Introduced in 1989, reverse mortgages were designed for homeowners nearing retirement age. The premise behind a reverse mortgage is to allow those aged 62 or older, with at least 50% equity in their home, to tap that equity in the form of a payment that will be made to them monthly. The complete opposite of a standard mortgage, reverse mortgages use the home’s equity to pay borrowers a set amount each month, with owners no longer required to pay their current monthly mortgage, if they have one.