(MONEY Magazine) – Reverse mortgages certainly do sound like an enticing option for many older homeowners--and that's been part of the problem. Sorting out the details of these complex loans--which aren't traditional mortgages at all but rather a way for homeowners 62 or over to cash in on the equity in their homes--has proved so daunting that some seniors have ended up paying needless and exorbitant fees for help. Now, two recent developments offer some relief to those considering the strategy.

First, though, here's a reminder of how these loans work. When you take out a reverse mortgage, you borrow against your home's value and receive either a lump sum, a line of credit or monthly cash advances. How much you get depends not just on the value of your home but on your age, where you live and interest rates.

With so many variables, the details can be dizzying. That's why the Department of Housing and Urban Development (HUD), the primary insurer of reverse mortgages, has required consumers to meet with HUD-approved counselors before taking out a loan. The problem: Some borrowers turned to outside agents, who charged fees of up to a whopping 10% of the loan.

To combat this abuse directly, HUD has beefed up consumer protections, forbidding any kind of commission on a reverse mortgage and requiring more detailed preloan information from the HUD-approved counselors. These new rules should go into effect in the fall.

The other development is a new Website run by the nonprofit National Center for Home Equity Conversion (www.reverse.org). Shopping for a reverse mortgage can be tough because lenders may not tell you the total annual loan cost (TALC), which includes both rates and fees, before you apply. That makes it hard to tell if your loan has, say, high expenses and a competitive rate. A calculator at the Website estimates your payout with a HUD and Fannie Mae mortgage and your TALC rate using current interest rates, typical fees and closing costs. With those numbers in hand, you can see how your lender measures up.

--Elyssa Yoon-Jung Lee