The National Reverse Mortgage Lenders Association reported 1,452 federally insured reverse mortgages in Nevada in the 2007 fiscal year that ended Sept. 30. Despite that 18 percent increase, that's well below the gains made during the housing boom.

"It is probably a combination of less financing available and housing prices coming down," said Deborah Moore, director of communications for the AARP of Nevada. "When there is more uncertainty in the economy, people want to stay put and in a situation they are comfortable with."

A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in the home into cash. The equity built up over years of home mortgage payments is paid the homeowner.

Many seniors use it to supplement Social Security, meet unexpected medical expenses and make home improvements, pay off mortgages or credit cards.

"It is certainly higher today that it was a few years ago because people are more aware of the product," said Bill Uffelman, president of the Nevada Bankers Association.

There were as few as 45 reverse mortgages done in Nevada in 2001 but their use had been doubling or increasing by more than 50 percent a year since then. In 2004, there were 465 completed, but that jumped to 719 in 2005 and 1,235 in 2006, according to the National Reverse Mortgage Lenders Association.

Nationally, there were 107,558 reverse mortgages in 2007. That's up from 76,351 in 2006. There were as few as 157 in 1990.

Steven Pace, a broker with Envision Lending of Las Vegas who conducts seminars on reverse mortgages, said the television commercials about the topic have generated interest and more and more financial planners are talking with seniors about them. Despite the housing slowdown, the use of reverse mortgages remains strong because with limited income from Social Security and pensions, the need by seniors for money for day-to-day expenses forces their hand, he said.

Seniors opt for reverse mortgages over traditional home equity loans or a second mortgage because no repayment is required until the borrower no longer uses the home. Moore said reverse mortgages are a better option for seniors than selling their homes because they feel comfortable staying where they live.

With a home equity line of credit, a homeowner must have sufficient income to qualify for the loan, and they are required to make monthly mortgage payments. The amount seniors can borrow depends on their age, the current interest rate, and the appraised value of their home or Federal Housing Authority's mortgage limits for the area, which in Las Vegas is $304,000, Pace said.

Conventional loan and jumbo loan programs that aren't FHA-insured allow homeowners to capture an even greater value. Some 90 percent of reverse mortgages are federally insured, the reverse mortgage group said.

Generally, the more valuable the home is, the older the senior, the lower the interest, the more they can borrow.

"Life expectancy is one of the key factors," said Darryl Hicks, vice president of communications for the National Reverse Mortgage Lenders Association. "Someone who is 62 will maybe get 45 to 50 percent of the equity and someone who is 85 may get 65 to 75 percent of the equity.

Among the payment options seniors have, according to the U.S. Department of Housing and Urban Development: