Seniors living on fixed incomes may be faced with various financial challenges as they age. If your elderly loved one is a homeowner, he or she may want to consider taking out a reverse mortgage loan. Here’s a list of benefits your loved one can gain from this option.
Protection from Market Declines
The federal government insures reverse mortgages, which covers the difference if your loved one should sell his or her home for less than the amount of the loan. The loan is considered paid in full from the proceeds of the sale.
No Impact on Social Security and Medicare
Since a reverse mortgage is a loan, it’s not considered income, which means government programs like Medicare and Social Security are unaffected by it. However, it’s important to note reverse mortgage proceeds may impact your loved one’s eligibility for need-based programs, including Supplemental Security Income and Medicaid.
A reverse mortgage could make it easier for your loved one to continue living at home. Many older adults are choosing to age in place, and some need a helping hand to continue living at home safely and comfortably. Luckily, there is professional at-home care seniors can trust and rely on.
Wide Choice of Disbursement Options
A reverse mortgage may offer more flexibility than other types of loans. For example, your loved one can choose to have the loan proceeds disbursed in one lump sum, in monthly payments, or as a line of credit. This allows your loved one to structure the loan to meet his or her unique financial needs.
Some older adults need help to age in place safely, and funds from a reverse mortgage can enable them to hire professional caregivers. Every senior has different needs when aging in place. Some simply need occasional assistance with household chores, while others may be managing serious illnesses and require more extensive elderly home care. Arlington seniors can count on Assisting Hands Home Care to provide the in-home care they need and deserve.
Continued Ownership of the Home
Many seniors believe a reverse mortgage means they no longer own their homes. However, a reverse mortgage doesn’t transfer ownership to the lender. Your loved one maintains ownership as long as he or she remains in the home, pays applicable taxes and insurance, and complies with the loan terms. If your loved one should pass away, you and any other heirs can pay off the loan and keep the home, sell the home and keep any capital gains, or deed the house back to the lender.
No Mortgage Payments
A traditional mortgage requires your loved one to make monthly payments to remain in the home. With a reverse mortgage, the lender makes payments to the borrower. No additional payment is required until the borrower sells the home, moves to another residence, or passes away.
Financial management is a challenge for most people, and it can be even harder for aging adults. Seniors can face a variety of age-related challenges. Though some families choose to take on the caregiving duties, there may come a time when they need a trusted Arlington in-home care provider. Families sometimes need respite from their duties so they can focus on their other responsibilities, and some seniors need around-the-clock assistance that their families are not able to provide. Assisting Hands Home Care is here to help. To learn about our quality-assured services, give us a call at (703) 988-1800 today.
