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Three Ways Older Americans Can Take Advantage of a Reverse Mortgage

In a previous article, we discussed six ways to take advantage of a home mortgage. But what about older Americans?

Every year, a growing number of Americans are age 62 or older. Because of this, they may face health and wellness challenges that make it difficult for them to stay in their home.

The good news is that many older Americans are turning to a reverse mortgage as a means to help use the equity they’ve developed to stay in their home and provide for a comfortable future.

Here are three ways older Americans can take advantage of a reverse mortgage.

1. Long Term Care

One way that homeowners can use a reverse mortgage is to pay for the costs of long term care.

This can allow them to pay for a visiting or live-in caregiver, companion, housekeeper, therapist or private duty nurse. These resources can also be applied toward long-term care insurance, or toward covering out of pocket expenses directly.

This allows them to maintain their independence and maintain ownership of their home while ensuring that they have the care they need to live comfortably and safely.

2. Upgrade for the Future

Many older Americans want to stay in their homes but may find that their homes have become harder to live in. Reverse mortgages can provide older adults with the funds they need to make their home easier to live in and maintain.

More and more companies have emerged that provide solutions such as

  • Motorized stair climbers
  • Replacing easy to trip on carpeting with safer flooring materials.
  • Renovating bathrooms with easier to access showers and bathtubs.
  • Removing walls and adding ramps to floorplans which can accommodate mobility assistance aides like walkers, or wheelchairs.
  • Upgrading HVAC and electrical systems to accommodate medical equipment.
  • Renovating kitchens with smart appliances and easier to access cabinets.
  • Converting ground floor rooms into bedrooms or converting unused upper floors into rental properties or guest accommodations.

As demand for these services grows, they are likely to become more available and affordable. Applying the assets from a reverse mortgage toward these home improvements

3. Bet Against the Market

One of the reasons why banks and lending institutions offer reverse mortgages is because they believe in the long-term prospects of the housing market. In other words, they offer the mortgage because they believe that your home will be worth more at the end of the mortgage than it will be at the beginning.

Some homeowners have actually seen a benefit from taking out a reverse mortgage if they feel the value of their home may decline over time. They can withdraw the equity from their home and place it into an interest-bearing account.

In this careverse mortgages for seniorsse, a reverse mortgage allows them to bet against the appreciation of their home, and take the proceeds and letting the line of credit account grow because it’s tax free.

Talk to an Expert

Before making any decisions regarding reverse mortgages or your home equity, talk to us.

DebtHelper.com’s HUD approved counselors can serve as an impartial guide to help you make the best decision for you and your home. Ready to get started? Schedule a free counseling session today or call us at 800-920-2262.

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