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Using
Home Equity as a Long Term Care Financing Option
Marlene
S. Stum, Ph.D. & Claire Althoff, Family Social
Science
Your
home equity is one asset that may be used to help
cover long term care costs. This may be done by
selling your home or by utilizing a reverse mortgage.
This checklist will help you gather information
and decide if you are willing to sell your home
to help cover the costs of long term care. When
you are done, you should be able to answer these
questions:
- ____
What are the housing availability and costs
in your community? What is the approximate value
of your home? Would you be able to sell your
house?
- ____
How do family members feel about the possibility
of selling your home?
- ____
Do you want to utilize either the equity in
your home or a reverse mortgage to cover the
costs of your long term care?
- ____
What are the potential consequences of reverse
mortgages?
- ____
What is the first step you need to take to utilize
your home equity to pay for your long term care
costs?
Learn
more about reverse mortgages. If you
and your spouse are 62 or older, you may qualify
for a reverse mortgage on your home.
- _____
Determine the availability and feasibility of
reverse mortgages in your area. Contact the
federal government Home Equity Conversion Mortgage
program and reach certified housing counselors.
(www.hud.gov/buying/rmtopten.cfm)
- _____
Visit the National Center for Home Equity Conversion
website (http://www.reverse.org)
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