The dream of most retiring seniors is to stay at home and age in place. Beautiful as the dream might be, there are specific health problems and costs that could stall even the best of plans. One of every three people aged 65 and above will require long-term medical assistance, statistically speaking.
Home care was introduced to encourage treatment at home instead of taking seniors to a nursing home or an assisted living home. However, the cost of assisted living varies based on the rates for the type of care and the amount of time required.
The cost, for the most part, is not covered by Medicare or Medicaid. They are paid for, from personal funds or long-term care insurance or both, if one saw into the future and invested in an insurance policy earlier in life.
When these things come up, the question becomes, “can I afford this”?
“Do I have the resources to take care of home health care costs and continue to provide income and liquidity needed to maintain my lifestyle without emptying emergency reserves”?
If you don’t, the smart solution would be to utilize accumulated home equity to solve these problems.
The solution – Reverse Mortgage
Talk about killing two birds with one stone. The HECM reverse mortgage is a home equity loan that enables senior homeowners 62 years and above, who want to remain in their homes, the capability to utilize part of their home equity to achieve greater financial security.
The Home Equity Conversion Mortgage (HECM) reverse mortgage may:
- Provide the money required to cover home health care costs among other needs
- Enable you to stay at home for the rest of your life without any commitment to make mortgage payments.
As a borrower, your obligations are:
- Keeping real estate taxes and homeowner insurance current
- Provide basic maintenance
- Living in the property as your primary residence.
Utilizing housing wealth most effectively should be a vital consideration. When used correctly, it can have a positive effect on improving and extending retirement security.
Talk to our qualified and certified experts at Reverse Mortgage Answers to know more about how you can use home equity to pay for your health care.