Did you know you can purchase a home, even new construction, with a Home Equity Conversion Mortgage? It’s a reverse mortgage that doesn’t require you to make a monthly payment.
I’ve had many conversations about this very issue with numerous senior clients who are concerned with having a mortgage in their 80’s and 90’s. Especially now, when the cost of living just seems to keep on rising for them.
In this time, most people are realizing the power of cash – accessible cash that is. As we age, it is important to have access to the money we have earned over the years in order to help us manage our chosen lifestyle and our health in the retirement years. A forward mortgage, such as a conventional home loan, a VA or FHA loan requires you to spend every month by paying back principle and interest, which puts pressure on your bank balance. Whereas a reverse mortgage allows you to keep your money in your pocket to use how you wish, with an option to pay or not to pay a monthly amount toward principle or interest.
Beware, not all reverse mortgages are equal. Be sure to speak to a professional who is willing to sit with you at your kitchen table (or their office) to explain the details. Online services are unlikely to do that, and may lead you into signing documents without explaining everything you need to know.
Consider this information as a tool you can use for your financial wealth.
Presented in partnership with Genie McGee a Reverse Mortgage Planner with Fairway Independent Mortgage Corporation.
If you need to know how much equity you have in your home, contact me for a complimentary real estate market analysis.
*This article was featured, in part, in the July 2019 edition of About Boomers Magazine.
A SRES is a Seniors Real Estate Specialist – A Realtor® designated by the National Association of Realtors. As with anything important, you want to make sure you are working with a professional who is experienced in helping you meet your specific needs, such as a doctor for your health care, a vet for your pets, an attorney for your legal needs and a SRES Realtor for your real estate needs during your late life move.
Buying and selling a home is one of the most important decisions you will make.
When you are in your retirement years there are a number of factors that may be affected when you purchase or sell a home. A SRES – Seniors Real Estate Specialist is trained and experienced to understand a variety of issues that may arise when you are contemplating a late in life move. A SRES understands the pros and cons of how Medicare or Medicaid can be affected by profits from a home sale, the guidelines presented by the Housing for Older Persons Act (HOPA), reverse mortgages and how to use it to buy a home, and finding suitable homes for older adults who are downsizing or considering an assisted living community.
Finding the right place to live that suits your need is always a priority for the SRES, in addition to walking you through each step of the process in order to reduce the confusion and stress that could arise during such an emotional time.
The most important qualities that a SRES can provide are sensitivity and patience.
Family dynamics can be a factor that impacts the sale of a house for anyone over the age of 50 and more so for older retirees – usually because there are adult children or grown grandchildren that play a big part in the life of the senior. If your family have a say in your life plans then a SRES may be the best Realtor to assist you. The SRES will consider the relationships and work towards helping you and your family through the details that are important to each of you.
A SRES is sensitive to the sometimes difficult and emotional journey that is involved when selling a family home that holds strong sentimental value to its owner(s). A SRES is mindful of the fear factors that may surround the homeowner as they make the transition.
If you are thinking of ‘aging-in-place‘, which many older adults are considering when purchasing a smaller home is not always affordable – a SRES may still be a good contact for you. A SRES is well versed on aging-in-place strategies and can assist with information about evaluating and modifying your home to make it more comfortable to remain there.
Choose a Realtor who has the mindset of ‘Service before Money’.
Most SRES have a passion for working with older adults. They understand that the circumstances surrounding the senior client may need a number of issues managed prior to the sale of the house and those are things that the SRES can help to resolve, sometimes by referring to other senior service providers, which can range from Senior Move Managers, Elder Law Attorneys, Assisted Living Communities to Financial Advisers or loan providers.
Hilary Walker, SRES, Realtor, Broker and SRES Instructor has a 10 step process when working with her clients and selling the house is number 7 on that list, which speaks to the detailed consultation and extended service that she and her team provide for her clients. Her motto is “Real Estate is more than property, it’s about the people”
Hilary is a Broker with The American Realty Professionals of GA and Director of American Realty Seniors Division. She is an instructor of the SRES Designation 2-day course for Realtors, and also offers seminars for Senior Provider teams (such as Home care providers, social workers, etc), older adult groups (such as church groups, active adult clubs, assisted living prospect group meetings and more). For more information call (678) 609-8019 or use our contact page here.
The Assisted Living Research Institute offers a vast selection of information suited for older adults and those with disabilities. Something we know in our communities is that older adults can find it difficult to find the resources that will help them. This company offers a good amount of detail along with links to some useful resources that might be just what you are looking for.
Seniors and people with disabilities often need supportive living options. When the time comes to start considering your options for assisted living, it’s easy to become overwhelmed by the sheer number of housing options. Not only are there different categories of assisted living to choose from, there are also a plethora of homes from which to choose. The right choice depends on a number of factors, including support needs, expense, and personal preference.
Financial Support Options
Long-term care can be expensive, and cost is one the main challenges to overcome. Although some families are able to pay out of pocket for residential and care expenses, many are not able to afford it on their own. For those individuals, there are financial support options including Medicare, Medicaid, Social Security and HUD programs.
Medicaid offers health coverage for some low-income families, including the elderly and people with disabilities. You may qualify for Medicaid based on your income and family size.
Although state Medicaid programs vary, residents with Medicaid will have at least some assisted living costs covered in most states. Some states use different terms to refer to assisted living coverage, such as residential care, adult foster care, personal care homes, or supported living. Home health services are one of the mandatory benefits available for those with Medicaid.
Coverage varies depending on the state, and may include medication administration, chores, homemaker services, and recreational activities. Medicaid does not pay for room and board in any state. However, it may cover meal preparation and serving, just not the cost of food itself.
Medicare is a national health insurance program generally available to seniors 65 and older, or younger people with disabilities or permanent kidney failure requiring dialysis or a transplant.
Home health services are typically covered by Medicare for those who are eligible. To become eligible, a doctor must certify that you are homebound, or that you need intermittent skilled nursing care, specific physical therapy, speech-language pathology, or continued occupational therapy services.
Medicare does not cover long term care such as assisted living, 24-hour care, meal deliveries, homemaker services like laundry, or personal care like bathing or dressing.
Social Security offers financial benefits for people who are disabled, or those who are 62 or older. Along with retirement income for seniors, Social Security provides two other means of financial support. The first is Supplemental Security Income (SSI), which is available for people with limited income and assets. The second program provides state-based benefits that can offer financial support for assisted living. This program is either called Optional State Supplements (OSS) or State Supplementary Payments.
People who are financially eligible can get assistance paying for room and board at an assisted living facility using OSS. This is in addition to Social Security Income payments and is paid directly to the community. The amount of OSS given to the resident is based on his or her income and can range from a few dollars to nearly $1,000 per month depending on income and state policies.
Some states cap the amount assisted living communities that accept Medicaid can charge for room and board. This limit is usually equivalent to the federal Social Security Income benefit, or the Social Security Income benefit plus the OSS payment.
This 105-Year-Old Martini Lover Has Been Retired for Almost 40 Years. Here Are Her Smartest Money Moves
Written by Elizabeth O’Brien, Nov. 6, 2018
Patricia Lyons Harrington recalls applying for a credit card in the 1950s, when she was a single, middle-aged school teacher in Boston. The company turned her down, since gender discrimination was as common in credit transactions as in other aspects of society.
More than a decade later, the tide began to turn, and the same company sent her a solicitation. “I said ‘no thank you,’” recalls Harrington, 105.
Well past the century mark, Harrington retains the feisty spirit that helped her forge her own career and manage her own money at a time when most of her peers married and stayed home to raise children.