In home senior care financing through reverse mortgages
If a family member needs help in order to continue living at home rather than be placed in assisted living or a nursing home, but finances are an issue, it is possible to consider elderly home care by increasing monthly income with a reverse mortgage. Reverse mortgages are becoming popular in the United States because they present a safe way to give older Americans increased financial security. Seniors can use these mortgages to supplement social security, to pay unexpected medical bills or make home improvements or to provide for needed in-home elder companion care.
Two criteria that must be met in order to be able to qualify for a reverse mortgage are that the borrower must be at least 62, and he/she must own their home. There is no minimum amount of income required to qualify for this type of mortgage. A senior could have no income and still be able to get a reverse mortgage. Considerations for the amount that can be borrowed include age, the current interest rate and the appraised value of the home. Such a mortgage enables a borrower to convert the value of their home into cash without having to move or repay a loan each month. In effect it is a loan against their home that will not have to be repaid as long as they continue to live in that home as their primary residence. They can never owe more than the value of their home and they will always retain title to their property. All taxes, utilities and insurance, of course, must be kept current just as with any other homeowner.
Cash received from a reverse mortgage can be paid to a person in a number of ways, including:
• A single lump sum of cash, i.e., all at once
• A regular monthly cash advance
• A Line of Credit account that allows the borrower to determine when and how much of the cash available to them will be paid
• Any combination of the above mentioned options
Occasionally in life we encounter something that appears to be “too good to be true.” Most times we should be wary of such but the reverse mortgage is the exception. Most people want to stay in their homes for as long as possible and to do so may require some extra help. In-home companion care is like bringing assisted living directly to the individual in the place that they prefer — their home. Now there’s a way to make this happen. Once thought of as a luxury only for the elite, elderly home care now may be possible for many seniors.
For more information on how a reverse mortgage might finance in home senior care, please feel free to contact me.
Karen Barton
Reverse Mortgage Consultant
Wells Fargo Home Mortgage
Phone: 720.641.3482
karen.barton@wellsfargo.com