Reverse mortgage has long been used to help seniors convert home equity into cash, and the funds can be used for anything the borrowers sees fit. The reason homeowners are looking to tap into these funds varies widely, but they’re commonly used to pay for extraordinary out of pocket medical expenses, including in-home senior care.
A common question is whether the amount of money received will be enough to cover the medical needs. Often it is – whether it is covering actual medical costs, live-in care, or drop-in care. The amount of money available to the borrower depends on the borrower’s age, the appraised value of the home, any outstanding mortgage balance, and current interest rates.
To best determine how much money will be needed for in-home care is to do some research. Find out what options are available from your local home care services. Talk to more than one. Get referrals from those you know and trust. Ask for an estimate of cost. Work with a reputable reverse mortgage specialist to ensure no one is being misled. They will be able to help break down the numbers long term to determine what is right for you.
Jan Jordan is a Reverse Mortgage Specialist serving the Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado, as well as the Cheyenne and Laramie communities of Wyoming. Contact Jan and learn if reverse mortgage is right for you.