“Everyday, elderly people are forced to move out of their homes and into crowded nursing facilities because they can’t afford the care they need to live alone.”
If you are at least 62 years old, it doesn’t have to be this way if you own your own home. You just have to understand some of your options.
It’s hard enough getting older having to cope with all of the daily physical challenges that come along with aging. Most of us expect things will get more difficult. But having to move out of our homes into a crowded, sterile smelling nursing home isn’t something any of us desire, nor are we prepared for it in our later years.
Unfortunately, over 8 million elderly are living in nursing homes today, but some wouldn’t have to if they were aware of their important options.
Years ago, Reverse Mortgages had a bad name, but that is no longer the case. Today, thousands of seniors are using the equity in their homes to afford the care they need while remaining in their homes.
“I’ll shoot myself before I move into a nursing home!” And most of them mean it!
I think remaining in their own home is probably the biggest concern of my geriatric clients. A reverse mortgage is a great option, especially if you don’t have long term care insurance. In fact, many of my clients are financing their Long Term Care insurance with their Reverse Mortgage funds.
- Reverse mortgage lets you cash-out the equity in your home without having to sell out.
- It’s a loan that all seniors and couples above 62 can obtain against their homes. You don’t need certain income or medical criteria to qualify for a reverse mortgage. But you do need to possess a home of your own with enough equity in it.
- This loan requires no repayment whatsoever as long as you live in your house and don’t leave it due to a sale out, death, or permanent shift.
If you’re like me, you’ve worked hard to pay for your home, and create a place of comfort for yourself. What you probably didn’t plan on (most of us don’t) is needing someone to come in and help you everyday with things like getting dressed, taking a shower, grocery shopping, cooking dinner, etc.
But this is reality for many elderly, isn’t it? And it is super expensive! Having part time help is about $125 per day, and full-time care is about $250 per day, about $7,500 per month. What financial options do you have left, if you don’t want to move out of your home?
It has often been said that money is security in our society. This is definitely more prophetic as we get older and more of our money gets spent on taking care of our health and other personal needs.
With a Reverse Mortgage, you can get cash in a lump sum, monthly installments, line of credit (whenever you require the money), or any chosen combination these.
While a large number of my clients have used the funds from their reverse mortgages to remain in their homes and afford care, you can use the funds for other things as well, including:
- pay off your current mortgage or debt
- home improvements
- medical bills
- prevent foreclosure
You may have been reticent about reverse mortgage products available in the market, but the industry and regulations have made them much more mainstream and practical.
Years ago, reverse mortgages were recourse loans. That means that if the bank was going to lose money on the loan after the homeowner moved out or died, they could go after the estate to make up for their losses.
Well that is no longer true. These loans are non-recourse. If the bank loses, they are Federally insured loans, and the government makes up the difference.
Another good thing to keep in mind is if there is still equity in your home your heirs get the proceeds from whatever is left over after the debts are paid.
So What Should You Do?
Find out if a reverse mortgage would be right for your financial situation.
To begin, click here to go to our secured page.
