If your aging loved one has a good amount of equity in his or her home and wants a little more financial stability each month, he or she may want to consider a reverse mortgage. Here’s a list of some ways your loved one can benefit from taking out this type of loan.
1. It Provides Reliable Income
The monthly payments offered by a reverse mortgage are ideal for seniors who have equity in their homes but have little income to live on each month. The funds can be used to pay for any costs incurred, including daily living expenses. The amount of the payment varies depending on the value of the home, but the payments are reliable and provide a safety net if your loved one has limited income.
Some older adults need help to age in place safely, and funds from a reverse mortgage can enable them to hire professional caregivers. Living independently is important for seniors who want to maintain a high quality of life. For some, this simply means receiving help with tasks that have become more challenging to manage over time. Even when families have the best intentions, they may not have the time to provide the care their elderly loved ones need and deserve. If your loved one needs help for a few hours a day or a few days a week, reach out to Home Care Assistance, a trusted provider of respite care Dallas seniors can depend on.
2. Your Loved One Can Stay in the Home
A reverse mortgage allows your loved one to continue living in the home until he or she passes away. Family members can pay the loan off if the home is to remain in the family, or the bank can sell the home to repay the loan amount. Seniors who receive the full value of their loans may stop receiving payments, but your loved one doesn’t have to vacate the home or repay the loan even if the reverse mortgage is paid in full.
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 elder care Dallas seniors can trust and rely on.
3. The Income Is Tax-Free
If your loved one sold the home, he or she would have to pay taxes and fees on the amount. Additionally, the lump sum payment received after selling can interrupt benefits like social security, which isn’t ideal for seniors on fixed incomes. A reverse mortgage is tax-free, and it doesn’t prevent the payment of other benefits your loved one is eligible for.
4. Foreclosure Can Be Prevented
Reverse mortgages allow seniors who are unable to pay their monthly mortgage payments to avoid foreclosure. Many reverse mortgage programs are available, including state-funded programs. After choosing the reverse mortgage that’s right for your loved one’s personal finances, he or she can use the funds to pay back taxes or cover other expenses that may prevent him or her from staying in the home.
Your loved one can also use funds from a reverse mortgage to pay for in-home care services. Seniors can face a variety of challenges as they age, many of which can be mitigated with the help of professional in-home caregivers who provide high-quality home care service. Dallas families trust Home Care Assistance to help their elderly loved ones age in place safely and comfortably. For more information about our flexible, customizable home care plans, call one of our compassionate Care Managers today at (214) 363-3400.