Elderly home care: how can your loved one take advantage of a reverse mortgage to pay for care at home?
Elderly home care options can be expensive. As your loved one ages, one of your, or theirs, biggest concerns might be determining how the in-home care that is needed will be paid for. The chances are good that at some point during their lifetime, no matter how independent they are, your loved one might need to hire someone to take care of them.
A reverse mortgage is an option that your loved one can consider as an option to cover the expenses of in-home care.
What is a reverse mortgage?
A reverse mortgage is a mortgage loan, usually secured by a residential property, that enables the borrower to access the unencumbered value of the property. The loans are typically promoted to older homeowners and typically do not require monthly mortgage payments.
However, it’s important to remember that since a reverse mortgage does not require you to make regular payments, the equity of the home is reduced in proportion to the amount of cash that is received.
When borrowing funds through a reverse mortgage you can choose between fixed or adjustable-rate reverse mortgages and the funds are generally tax-free. Here is a link to a reverse mortgage calculator.
What can the money be used for?
The funds from a reverse mortgage are first used to pay any loans that have been taken out against the home. Afterward, the funds can then be used however you choose.
For example, the funds from a reverse mortgage can be used towards the payment for long-term home care expenses, including:
- Memory care, assisted living, or nursing home care for a parent or spouse.
- Housekeeping, meal prep, daily living activities, and other home care services.
- Modifications to improve home safety such as a walk-in shower or wheelchair ramp.
- Out-of-pocket medical expenses.
- Respite care or adult day care services.
Typically, to cover these costs, Medicare and Medicare supplements are often expected to cover these expenses, however, they will often not cover the full amount, or they will only cover the price for basic care and not any special services. This is what makes a reverse mortgage so attractive.
Elderly home care in Boston MA: is this option right for you?
Elderly home care can help your loved ones live a better life and while a reverse mortgage won’t be a good fit for everyone, the income generated can help your loved one stay in their own home for longer and afford the proper care that they need.
TeamCarer provides team and technology-based care for in-home seniors who need daily living assistance such as bathing, grooming, dressing, personal hygiene, medication reminders, and other care needs. We are a local company, with service areas in Boston Metro, Metro West, Brookline, Newton, Wellesley, and Needham. Contact us today to get started.