Selling the Home to Pay for in-Home Senior Care is a Huge Mistake

Why Today's Reverse Mortgage is a Better Option

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by Lisa LaMagna, Editor, AgeInPlaceFinance.com

father and daughter
A caregiver for 40 hours a week -- not even 24/7 -- costs almost $50,000 each year.

Care is More Expensive Than You Think

Taking time off from work and career is costly. But so is paying for care with your own money. Your parents' might not have money left over from social security and pensions to pay for care either.

Did you know the average cost to hire a senior care aide is $23 per hour in California? Having care for 8 hours a day allows many elders to live in their own homes, at a cost of nearly $50,000 a year.

table showing 40 hours per week of home care costs fifty thousand dollars

Selling The House is a Big Mistake

It's tempting to want to "sell out." But selling the house puts a stop to any upside appreciation your parents could gain in the future. And, now your parents must move to another place. Being in the home they love, in the community they love, is where 90% of seniors want to "age in place." Moving into a senior facility should be a last resort. A familiar home is usually the safest home for someone with memory or mobility challenges. Moderate changes to the living situation -- safety renovations, visiting care aides, visits to an adult day care center -- can keep aging adults living in their homes.

Selling the home and moving into an unfamiliar environment is a huge loss of independence for many seniors. Beyond being an appreciating asset, the home has the emotional value of memories, and the safety value of familiarity.

But My Parent's Don't Qualify for a Home Equity Loan

Social security checks and pensions are not rising nearly as much as inflation. Home values keep rising here in California, and are predicted to rise again 2022. Your parent's home could be worth $100,000's more since they bought it.

Still, most seniors age 62+ can NOT refinance their homes with traditional "home equity" loans. This is because their monthly income isn't enough to pay a new monthly mortgage payment plus all their monthly bills -- utilities, property taxes, homeowners insurance, and living expenses.

Did you know?

In a reverse mortgage, the home title always stays with the homeowner.

Is the Reverse Mortgage a Solution?

Savvy Californians are using their appreciating home equity to pay for care, without selling their house.

Today's reverse mortgages are a clever way to pay for your parents' care. Your parents can keep their home, and participate in rising home prices, while getting monthly payments to pay for care.

Reverse mortgage professionals now involve the whole family, including primary heirs, in planning discussions. So you'll always be in the loop.

Reverse mortgages work well for people who want to live the rest of their lives in the home they love:

  • Your parents always keep ownership of the house
  • Your parents can borrow up to 50% to 75%¬†of their equity in the house
  • Your parents can receive lump sum or monthly payments
  • Your parents can still leave the home to their heirs

Is this right for my parents?

  1. Use our decision tool, below
  2. Find out how much estimated financing is possible
  3. Get a personalized report and a US Government "scenario guide"
  4. If you like, have a low-key consultation with our vetted partners

Ready to learn about

Today's Reverse Mortgages?

This is not your grandfather's reverse mortgage! Your parents keep title to the house, can pass it on to their heirs (you) and protect the whole family.