Retirees are using "reverse mortgages" as a way to gain financial breathing room without having to sell their homes and move away.

Still, even some mortgage brokers are concerned by how much their clients are stretching their spending power using creative mortgages.

People who bought their homes using adjustable-rate mortgages to keep their monthly payments low are starting to see higher mortgage bills.

A promising alternative would be to use "silent mortgages," in which no payments are due until the homes are resold.

But financial planners and mortgage analysts warn buyers against using interest-only mortgages to look beyond their means.

Mr. Meadows said criminals used such mortgages to qualify for loans they had no intention of repaying.

She was good for the home builder and the banks, which used mortgages like hers to reach a new market for consumer loans.

Borrowers can also use interest-only mortgages to qualify for a more expensive home.

Much like her former boss she used mortgages to make money and at the time of her death she had an estate worth over $20,000.

The company did not use mortgages, and focused on picking chain stores and restaurants that had positive long-term prospects in terms of staying open.