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- Use Reverse Mortgage to Afford Care at Home
- Risk of Spousal Caregiving
- 6 Step Care Planning Process
- Increasing Financial Pressures on Family Caregivers
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Using a Reverse Mortgage to Pay for Long-term Care Costs
If you are at least 62 years of age and you own your home, you could use a reverse mortgage to pay for long-term care.
A reverse mortgage is a means of borrowing money from a portion of the equity built up in your home. You are freeing up money that would otherwise only be available to you if you sold the house. You can stay in the house until you die, without making monthly payments. The loan is repaid when the borrower dies or sells the home. The balance of the equity in the home will go to the homeowner’s estate.
Payments can be received monthly, in a lump sum, or the money can be used as a line of credit. The funds received from a reverse mortgage are tax free.
While the eligibility age for a reverse mortgage is 62, it is best to wait until your early 70's or later. The older the borrower, the larger the amount of equity available to borrow will be. There are maximum limits set by the federal government each year as to how much of the equity can be borrowed. Usually only about 50% of the value of the home is made available in the form of a reverse mortgage.
You can use the funds from a reverse mortgage to cover the cost of home-health care. Because the loan must be repaid if you cease to live in the home, long-term care outside the home can't be paid for with a reverse equity mortgage unless a co-owner of the property who qualifies continues to live in the home.
A reverse mortgage is a means of borrowing money from a portion of the equity built up in your home. You are freeing up money that would otherwise only be available to you if you sold the house. You can stay in the house until you die, without making monthly payments. The loan is repaid when the borrower dies or sells the home. The balance of the equity in the home will go to the homeowner’s estate.
Payments can be received monthly, in a lump sum, or the money can be used as a line of credit. The funds received from a reverse mortgage are tax free.
While the eligibility age for a reverse mortgage is 62, it is best to wait until your early 70's or later. The older the borrower, the larger the amount of equity available to borrow will be. There are maximum limits set by the federal government each year as to how much of the equity can be borrowed. Usually only about 50% of the value of the home is made available in the form of a reverse mortgage.
You can use the funds from a reverse mortgage to cover the cost of home-health care. Because the loan must be repaid if you cease to live in the home, long-term care outside the home can't be paid for with a reverse equity mortgage unless a co-owner of the property who qualifies continues to live in the home.
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