Mom’s looking at senior living communities—and she may be ready to make the move. As you’re reviewing her budget together, you may be looking at the best ways to ensure her financial comfort during retirement. For some seniors, a reverse mortgage is an option to consider.
A reverse mortgage is a mortgage taken out against the equity in a home. It’s available to people 62 or older who have either paid off their entire mortgage or have it almost paid. Depending on the mortgage, Mom could receive 20-70% of her home’s value in a single lump sum, monthly installments or a line of credit. Best of all, she can use this money to pay for whatever she needs.
This may be a good option if:
Mom needs to move into an assisted living community immediately.
If Mom recently experienced a bad fall and needs immediate assistance from an assisted living community, she might opt to take out a reverse mortgage and use the money to help pay for the move.
Mom needs full-time care.
If Mom is in declining health, a reverse mortgage might be an option to help finance the costs of skilled nursing or memory care.
Mom chooses to stay in her house for the time being.
Mom may choose to remain in her home for a while longer, using the funds to make accessibility improvements to the house or to buy long-term health insurance.
Mom wants to pay off her existing mortgage.
Mom can even use a reverse mortgage to pay off the remaining mortgage on her home—giving her more options to choose where she wants to live.
A reverse mortgage is only one of the financial options that may be available to your mother. Before making a decision, talk to your accountant, financial planner or lawyer about her choices.
Learn more about ways to pay for senior care from the experts at Life Care Services.