For many seniors faced with failing health, a reverse mortgage provides the financial means to remain living at home. But before you make the decision to sign off on this particular form of home equity loan, it’s imperative to know what you’re getting into and whether or not it’s the right choice for you.
When it comes time to put elder care plans in place, applying for a reverse mortgage is certainly one viable source for funding. Seniors getting by on limited income and savings can borrow against the value they have acquired in a home, enabling them to age in place instead of having to leave their familiar surroundings and move to a nursing home.
With a reverse mortgage, you can keep residing in the home you love with full title and ownership rights intact. Borrowers get a choice of receiving their reverse mortgage payout as a lump sum, monthly installments, or a line of credit. Plus, the money is yours to use however you like, and you can never end up owing more than your home’s value.
Regardless of your marital status, you may find that a reverse mortgage is a great solution to your current financial challenges. Seniors who prefer to live out their remaining years at home often use the money to pay for property modifications, home health care assistance, and other necessities, including long-term care insurance. As long as any funds you receive are spent within the appropriate time frame, the money is not taxable and has no bearing on your income, Social Security, or Medicare benefits.
To learn more about reverse mortgages and the important tax considerations of planning for your golden years, contact the knowledgeable professionals at Taxation Solutions, Inc. In Cincinnati and beyond, we’re here to help you brighten your financial outlook with our compassionate, comprehensive tax assistance and 40+ years of tax expertise.