When it comes to reverse mortgage there are plenty of options. You can choose a reverse mortgage fixed rate where you take out a lump sum at the beginning of the loan or an adjustable-rate reverse mortgage where you can set up a line of credit or tenure payments.
A reverse mortgage can be either a Home Equity Conversion Mortgage HECM or a proprietary reverse mortgage. You can use the equity to cover healthcare costs you otherwise would not be able to pay. All portions of the equity you use is not taxable.
Did you know the most expensive timeframe for a senior citizen is the last five to ten years of their life?
When a hospitalized senior needs continuous care, some may choose to go to assisted living. Others may want care at home. Either of those choices are expensive. The average costs of assisted living range from $6000 – $15000 per month and a at home nurse runs about $4500 – $8000 per month on top of everyday bills. Medi-Cal or whatever government health assistance you may be entitled to may not cover all expenses.
There are many reasons to take out a reverse mortgage. The reason you took out one is very specific to you. But that is the beauty of a reverse mortgage. You can tailor it to your own needs and use it however you wish.