How to Pay for Home Care Part II: Reverse Mortgages – Senior Home Care Phoenix Scottsdale Maricopa County Arizona AZ

For Care in Phoenix, Scottsdale, Fountain Hills, Carefree, Cave Creek, Paradise Valley, Arizona, please click Right at Home or call 602-569-7240 or drop us an EMAIL at info@rah-phx.com.  Thank you!

The costs associated with home care can vary greatly depending upon the number of hours of service needed each day or week, where you are located in the country and the level of services you need.  As many things can affect the costs of home care, there are many options and tools seniors can use to pay for home care. Right at Home would like our readers to be aware of their options.  This post is the first in a series to help you gain a better understanding of what’s available.

A reverse mortgage allows homeowners aged 62 or older to access the equity they have in their home. The lender makes payments to you, the homeowner, not the other way around. Think of it this way: a reverse mortgage gradually reduces the amount of equity you have in your home by the amount of the payments advanced to you, plus interest on the amount advanced, plus any fees you finance as part of the deal.

The money that is accessed can be used to make improvements and modifications for safety and accessibility, pay for home care needs or any nmumber of other things. The funds you receive are likely to be tax-free and will not affect Social Security payments or Medicare benefits.

The loan doesn’t need to be fully repaid until the last borrower moves out of the house or the home is sold. You or your heirs will never owe more than the value of the home at the time of repayment, even if the loan balance is higher than the value of your property, therefore no debt will be passed on to your heirs.

There are some qualifiers: To be eligible for most reverse mortgages, you must be at least 62 years old.  In the case of a married couple, the youngest of the two must be at least 62 years of age.  You must also either own the home outright or have a low mortgage balance that can be paid off with the proceeds from the reverse loan. You must live in the home. You are still required to pay your real estate taxes and other conventional payments like utilities.

Things to keep in mind:

• You’ll need to work with a reputable lender or consult a financial advisor before you proceed. It is important that you understand what you’re committing to before you sign any documents.

• Investigate the costs involved in a reverse mortgage before making the decision. Closing costs and fees may amount to more than 5% of your home’s value.

• If you plan to live in your home for at least three years, a reverse mortgage can make good financial sense. However, if you know you won’t stay in your home that long, then the cost of getting the loan may outweigh the benefits.

• Keep in mind that using the equity in your home will reduce the amount of money you leave to your family as inheritance.

Remember, a reverse mortgage is, indeed, a loan. And, as with any loan, there are fees and interest that must eventually be paid.

Being an informed, careful borrower is important. Go to a reverse mortgage specialist you trust and don’t be afraid to ask as many questions as you want about anything you don’t fully understand. And don’t sign on the dotted line without discussing your situation with a trusted advisor, friend, or loved one. In short, be sure to select a reverse mortgage lender and type of loan (for example, HECM or Home Keeper mortgage) with the same care and attention you would bring to any major investment decision.

For more infromation, you can call the Housing Counseling Clearinghouse at 1-800-569-4287 to obtain contact information for a HUD-approved housing counseling agency and a list of FHA-approved lenders in your area.

For more infromation, the AARP website offers information about reverse mortgages you may find useful, including altenatives to a reverse mortgage.

The National Reverse Mortgage Lenders Association (NRMLA) is another great website to visit for more information.

Let us know if this information was useful!  We’d love to hear from you.

In Arizona, Right at Home is standing by to assist you with your Senior In-Home Caregiving Needs.  Our trained, experienced, background-checked, caring, bonded and insured caregivers are waiting to assist you with everything from things like companionship, housekeeping and transportation all the way to helping with personal care items such as bathing, continence control and much more.

For Care in Phoenix, Scottsdale, Fountain Hills, Carefree, Cave Creek, Paradise Valley, Arizona, please click Right at Home or call 602-569-7240 or drop us an email at info@rah-phx.com.  Thank you!