(CBS) Many seniors have lots of equity in their homes but a limited cash flow to provide for their golden years.

That's why some are turning to reverse mortgages, where banks pay you to live in your own home.

But the reverse mortgage option isn't right for everyone.

Vera Gibbons from Kiplinger's Personal Finance magazine visited The Early Show to help clear up some questions.

As Gibbons explains, "It's like a regular mortgage but it works in reverse: Rather than you paying the lender, the lender is paying you."

She says there are several types of homeowners who might be interested in these mortgages.

The first is what she calls the need-based candidate — "Someone who needs this money for a medical emergency or some other type of emergency."

Another is "the financial planner type." Gibbons said this person is, "Someone who might want to use this rather than dip into their retirement funds."

And then there is "someone who is just looking to live, to enhance their lifestyle. To play a lot of golf, to fund their retirement, to take vacations."

Gibbons says the cost of reverse mortgages often is the biggest turn-off.

"That would be the No. 1 objection people have to reverse mortgages," she told co-anchor Rene Syler.. "You've got the lender origination fee, which is 2 percent of the loan amount, you've got the mortgage insurance premium, another 2 percent.

"If you look at these two costs combined, it could be like, $5,000, $10,000, $12,000 right off the top." Plus there are the standard closing costs.

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