In Home Care and Reverse Mortgages

Planning for the care of a loved one can be a daunting task. Many of the questions that arise during the process will consider the type of care that may be needed — for example, will your loved one be able to stay at home with assistance from family or a professional in-home caregiver, or would they benefit from a move to an independent or assisted living community? But often, the elephant in the room for many families isn’t choosing the type of care, but how to pay for it.

Speak to a financial pro or in home care expert. While selling a home is a common way for people to pay for the costs of in home care facilities, a reverse mortgage “may be helpful in circumstances where one or both parties are going to remain in the home,” says Michelle Ash, a Jacksonville, Florida-based certified financial planner and chartered adviser in senior living.

Designed to help retirees stay longer in their homes, reverse mortgages are available only to people age 62 and older. “They’re a way to help seniors age in place at home or have extra funds for needed expenses”.

Reverse mortgages for seniors are an increasingly popular loan option that turns a borrower’s home equity into money to pay for in home care, health expenses, or even home modifications.

One of the most common misconceptions about reverse mortgages is that you’re selling your house to the bank. In fact, reverse mortgage borrowers maintain the title and ownership of their homes for the entirety of the loan. As long as you maintain the home and pay property taxes, you cannot be forced to move or repay the loan.

You don’t have to pay the loan while you live in the home — it’s not due until the death of the last borrower, or one full year after they have moved out of the home. Typically, the home is then sold, and the proceeds from the sale go to repay the amount borrowed on the reverse mortgage, plus interest. Any remaining money goes to the homeowner or the beneficiary.

Home safety modifications to help with aging in place, such as a wheelchair ramp or walk-in shower, in home care services or respite care.

To become eligible, a person must demonstrate to the lender that they’re able to pay property taxes, homeowner’s insurance, and other related costs listed in the loan agreement.

What are the pros of a reverse mortgage? You don’t have a mortgage payment. One of the biggest benefits is that it eliminates monthly mortgage payments, and instead provides additional income. You own your home.

The payments aren’t taxable. Reverse mortgage payments aren’t taxed and don’t affect Social Security or Medicare benefits.

For in home care questions call Scott Underwood at (205) 908-2993 or (888) 220-0393 or email