Paying for Senior Living: Home Equity
Paying for senior care can be one of the most discouraging parts of moving into a senior living community. With the high cost, many people struggle to figure out a payment plan. Luckily, there are options for seniors to access their assets to be able to pay for senior living.
One of the ways seniors can pay for senior living in through equity in their home. In simple terms, home equity is the difference between what you owe on your house and what it’s currently worth. You can use the equity in your home for a variety of reasons, including healthcare expenses such as long-term care, short-term care, rehabilitation, and therapy for seniors.
Home Equity Options
The equity in your home can be accessed in different ways to pay for senior care. Among the options available to homeowners are:
Home Equity Line of Credit: The Home Equity Line of Credit is established in advance and can be used whenever necessary. HELOCs are like credit cards, except they use your home as collateral. Money can only be withdrawn during a specified borrowing period and within a certain credit limit. Monthly payments are required and interest rates vary.
Reverse Mortgage: Reverse mortgages are home equity loans for homeowners over 62. By borrowing against your home equity, you can supplement your income. FHA property guidelines and flood requirements must be met for homes to qualify. Payment is made to the borrower after the lender evaluates the borrower’s credit history, income, assets, and expenses. In the event of death, home sale, or permanent move-out, the loan must be repaid.
The team at Cleveland Health Care Center in Cleveland, Texas, understands how stressful it can be to plan for senior care. No matter what type of financial plan you require, our professional and knowledgeable financial assistance team can navigate the complexities. Feel free to contact us today at (317) 845-0032 if you need assistance.