reverse mortgage cost colorado

 Alternatives to Long Term Care Insurance: Using a Reverse Mortgage and Other Techniques to Purchase Long-term Care Costs

Because long-term care insurance requires you to be in a healthy body, this planning option is not available to everyone, especially older applicants for whom the premiums may also be prohibitive. If you should be at least 62 years old and you own your home, make use of a reverse mortgage to cover care in the home and for a long-term care insurance plan that otherwise might be unaffordable.

A reverse mortgage cost colorado is really a method of borrowing money from the quantity you've already paid for your house. You are freeing up money that would otherwise only be available for you in the event that you sold the house. You can stay in the home until you die, without making monthly payments. The loan is repaid once the borrower dies or sells the home. The balance of the equity in the house will go to the homeowner's estate.

Payments could be received monthly, in a lump sum or the amount of money can be used as a line of credit. The funds received from a reverse mortgage are tax-free.

As the eligibility age is 62, it is most beneficial to hold back until your early 70's or later. The older the borrower, the larger the total amount of equity available. You can find maximum limits set by the government annually concerning how much of the equity could be borrowed. Usually no more than 50% of the worthiness of the property is created available in the form of a reverse mortgage.

You need to use the funds from a reverse mortgage to cover the price of home-health care. Because the loan should be repaid in the event that you cease to call home in the house, long-term care outside the house can't be paid for with a reverse equity mortgage unless a co-owner of the property who qualifies continues to call home in the home.

Use Your Home to Stay at Home Program

The National Council on the Aging, with the support of both Centers for Medicare and Medicaid Services (CMS) and the Robert Wood Johnson Foundation, is laying the groundwork for a strong public-private partnership to boost the use of reverse mortgages to simply help purchase long-term care. The ultimate goal of the Use Your Home to Stay at Home(TM) program is to boost the right use of reverse mortgages to ensure that an incredible number of homeowners can tap home equity to cover long-term care services or insurance.

Reverse Mortgages Can Assistance with Long-Term Care Expenses, Study Says

A new study by The National Council on the Aging (NCOA) demonstrates using reverse mortgages to cover long-term care in the home has real potential in addressing what remains a significant problem for a lot of older Americans and their families.

In 2000, the nation spent $123 billion per year on long-term take care of those age 65 and older, with the quantity likely to double within the next 30 years. Nearly 50% of those expenses are paid out of pocket by individuals and only 3 percent are paid for by private insurance; government health programs pay the rest.

In line with the study, of the 13.2 million who're candidates for reverse mortgages, about 5.2 million are either already receiving Medicaid or are at financial threat of needing Medicaid if these were faced with paying the high cost of long-term care at home. This economically vulnerable segment of the nation's older population would be able to get $309 billion as a whole from reverse mortgages that might help purchase long-term care. These results derive from data from the 2000 University of Michigan Health and Retirement Study.

"There's been lots of speculation whether reverse mortgages could possibly be part of the solution to the nation's long-term care financing dilemma," said NCOA President and CEO James Firman. "It's clear that reverse mortgages have significant potential to simply help many seniors to cover long haul care services at home."

In line with the study, out of the nearly 28 million households age 62 and older, some 13.2 million are good candidates for reverse mortgage cost colorado.

"We've discovered that seniors who're good candidates for a reverse mortgage might get, an average of, $72,128. These funds could be properly used to cover a wide variety of direct services to simply help seniors age set up, including home care, respite care and for retrofitting their homes," said Project Manager Barbara Stucki, Ph.D. "Using reverse mortgages for a lot of could mean the difference between staying at home or planning to a nursing home."