Age Safely at Home by Using Your Home Equity
Can a home equity loan after retirement pay for long-term healthcare? That depends…
Did you know that an estimated 47% of men and 58% of women age 65 and older will need some type of long-term care in their lifetime? Seventy-seven percent would prefer to receive care at home, rather than at traditional long-term care facilities or convalescent homes. While some insurance policies may help chip away at the cost, paying for care in your home, assisted living, or nursing home care — especially before you need it — may seem overwhelming.
If you’re in or nearing retirement and hoping to age safely in place, reverse mortgages can be a source of funds to help cover the cost of in-home care. Designed for homeowners age 62 and older, this increasingly popular loan option allows you to tap into the equity you’ve built up in your home, all while living in it and retaining ownership**. You can use the proceeds as you wish to pay for in-home care, supplement a retirement income, make home renovations or even purchase a new home to better fit your changing needs. Funds can be accessed as a lump sum, monthly payments, or a standby line of credit that grows when left untouched. *
When reverse mortgages are most advantageous
Do you see yourself making safety modifications to remain in your home as long as possible? Does your spouse have a condition that will require ongoing care in the near future? Depending on your situation, a home equity loan after retirement may be able to cover some or all of the financial burden — or none at all. Here are a few scenarios:
- Retired individuals and couples in fair health. For single and married retirees not in need of immediate care, the proceeds from a reverse mortgage can be used to help cover the cost of in-home care, purchase long-term care insurance and/or to modify their home, making it safer and more comfortable for the years ahead.
- Retired individuals requiring care. A reverse mortgage may be an option to help pay for in-home care, but only as long as their condition and finances can handle it. If their health eventually requires a nursing home or assisted living facility, a reverse mortgage might not be the best option. Under the terms of the loan, the home must be the primary residence.
- Married couples with one spouse needing care. If one spouse’s health requires them to move into a care facility, a reverse mortgage can help cover the expenses, if a co-borrower remains in the home. If the spouse receiving care passes away, the remaining co-borrowing spouse may continue to live in and own the home**. Couples should consider including both partners on the loan as a means of protection for a widowed or displaced spouse.
- Married couples with both spouses needing care. When both spouses require special care, a reverse mortgage can be used to cover the cost of in-home services. But if nursing home care is needed, reverse mortgages must be repaid when the last borrower moves from the home or passes away, as described above.
Before deciding on a reverse mortgage or another financial solution, speak with your financial advisor to help determine your best payment option for your long-term financial security.
Aging well means living well
With a reverse mortgage loan, you can leverage the funds to live your best life now, while planning for the years ahead. Find out how this strategic financial tool can help you stay in your home** well into the future. Call Reverse Mortgage Funding (RMF) today at (888) 277-1567 and schedule an in-person or virtual information session with a local loan specialist.
This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans retire more freely, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 4.8-star / Excellent score on Trustpilot; 4.8 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call 888-277-1567 to speak with a licensed reverse mortgage specialist to learn about our retirement financing products and solutions.
* Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages.
**As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.
SEE WHAT FUNDS YOU MAY HAVE AVAILABLE
If you have equity in your home and believe you meet the eligibility requirements, a HECM may be the option that could help you retire smart.