Using a Reverse Mortgage to Age in Place
One of the most important decisions to make as a retiree is choosing where to spend your golden years. Some prefer to downsize or move closer to relatives; others choose to pick a retirement home that suits their needs. Yet, many Americans still choose to age in place. What is “aging in place” and is it right for you? If you’ve grown attached to your current home where you’ve lived out much of your life, will you be able to stay there? These are important questions for seniors to ask, and they can have tremendous ramifications on your retirement dreams. While aging in place can be difficult to arrange and financially sustain, having a reverse mortgage may make it easier to achieve.
What is Aging in Place?
Essentially, aging in place means that a person plans to stay in their home for as long as possible with the comforts that matter to them. While supplementary services may be needed to sustain their living conditions and maintain quality of life, these accommodations are worth making. Many seniors can’t stand the thought of moving into a nursing home – if at all possible, many would prefer to make arrangements to live out their golden years in their home.
While aging isn’t exactly fun, it doesn’t have to be a struggle. Aging in place may solve some headaches such as having to relocate to a nursing home, but it can also come with its own challenges. No matter how fit a person is and how well they take care of themselves, inevitably there will be physical, mental, and emotional changes that take a toll. Not all of them must be problematic, but the fact that change will come is undeniable. Preparing to age in place also means finding accommodations for homes with stairs. Weakening eyesight may cause problems for homeowners in rural areas who need to drive long distances for groceries. Whether or not these changes impact your plans will vary from person to person, but it’s clear that change should factor into your plans from the start.
How to Financially Prepare for Aging in Place
In order to live out your later years comfortably, it’s important to put your retirement plans into motion as soon as possible. Although aging in place will only help you during retirement age, it should act as an incentive for everyone to save money while working. Age changes everyone, and you may not be physically able to work for as long as you’d like. This is when aging in place would be appreciated the most, and that’s why it’s so important to start saving as early as possible.
However, for many seniors, planning won’t be enough. Life sometimes throws curveballs at you, and it’s in these moments where financial tools like the reverse mortgage can come to the rescue. Because a reverse mortgage allows seniors age 62 or older to stay in their home without making monthly mortgage payments, it can serve as a convenient way to achieve your dream of aging in place. Eligible seniors who get a reverse mortgage will also be able to eliminate their existing mortgage and receive their proceeds in several different ways. Some prefer the utility of receiving monthly disbursements, while others prefer the flexibility of a line of credit. Because the reverse mortgage does not have to be paid back until the loan comes due, you could give yourself enough financial freedom to age in place. No matter how you choose to use a reverse mortgage, make sure to keep up with your property taxes, homeowners insurance, and maintenance expenses to avoid foreclosure. If you’re curious about the opportunities a reverse mortgage may provide for your retirement, feel free to give our licensed specialists a call.