Better read this if you are 62 or older and still making mortgage payments. It’s time to reverse your thinking.

More than 1million seniors have taken advantage of this “retirement secret.”

It’s a well-known fact that for many senior citizens in the U.S. their home is their single biggest asset, often accounting for more than 50% of their total net worth.

Yet, according to new statistics from the mortgage industry, senior homeowners in the U.S. are now sitting on more than 7.19 trillion dollars* of unused home equity.

With people nowliving longer than ever before and home prices back up again, ignoring this “hidden wealth” may prove to be short sighted.

All things considered, it’s not surprising that more than a million homeowners have already used a governmentinsured Home Equity Conversion Mortgage or “HECM” loan to turn their home equity into extra cash for retirement.

It’s a fact: no monthly mortgage payments are required with a governmentinsured HECM loan; however the homeowners are still responsible for paying for the maintenance of their home, property taxes, homeowner’s insurance and, if required, their HOA fees.

Another fact many are not aware of is that HECM reverse mortgages first took hold when President Reagan signed the FHA Reverse Mortgage Bill into law32 years ago in order to help senior citizens remain in their homes.

Today, HECM loans are simply an effective way for homeowners 62 and older to get the extra cash they need to enjoy retirement.

Although today’s HECM loans have been improved to provide even greater financial protection for homeowners, there are still many misconceptions.

For example, a lot of people mistakenly believe the home must be paid off in full in order to qualify for a HECM loan, which is not the case. In fact, one key advantage of a HECM is that the proceeds will first be used to pay off any existing liens on the property, which frees up cash flow, a huge blessing for seniors living on a fixed income. Unfortunately, many senior homeowners who might be better off with a HECM loan don’t even bother to get more information because of rumors they’ve heard.

In fact, a recent survey by American Advisors Group (AAG), the nation’s number one HECM lender, found that over 98% of their clients are satisfied with their loans. While these special loans are not for everyone, they can be a real lifesaver for senior homeowners.

The cash froma HECM loan can be used for any purpose. Other common uses include making home improvements, paying off medical bills or helping other family members. Some people simply need the extra cash for everyday expenses while others are now using it as a “safety net” for financial emergencies.

If you’re a homeowner age 62 or older, you owe it to yourself to learn more so that you can make an informed decision.