Reverse mortgage not always best choice

It can get pretty complicated to decide between a fixed-rate loan and an adjustable-rate loan or whether it's best to take the money as a lump sum or as monthly draws on a line of credit. I'd suggest following the recommendations in the Bankrate article and read up on the mortgage by getting the AARP guide "Home Made Money."

Also, consider consulting with a fee-based financial planner on the decision. The National Association of Personal Financial Advisors provides a listing of fee-based planners. Bankrate can also help you find a Certified Financial Planner.

While your relative keeps any remaining equity in the home not spent on accumulated principal and interest expense, there could be some other financial alternatives to the HECM. This is especially true if your relative wants to keep the home in the family and the family is willing to finance her income needs. An estate-planning attorney could structure a plan to accomplish that goal.