ARTICLES / General /
Thinking About Reverse Mortgage /
Other Articlesby Cheryl Ellis, Staff Writer
Upgrading the home is one way of “making” money with the
reverse mortgage. Changing floor schematics to
allow for walkers or other ambulation products will help
in the present and be a selling value for the future.
The safer the home is, the better the resale value.
Hurricane shutters will allow individuals to ride out
storms in their homes, unless they are in a mandatory
evacuation area. The shutters will still protect
the home whether it is inhabited or not, and can be used
if extended visits are made to keep the home secure.
The
family who cannot stretch their income to pay for home
health aides may find that a monthly disbursement will
cover these costs. Again, speak to your tax
advisor about how this affects your loved one’s taxes
and if anything can be written off at tax time.
The
reverse mortgage must be paid back once the home is no
longer the principal residence of one or more of the
borrowers. At the point where it is no longer the
main residence, the loan may be paid back out of pocket,
or from the proceeds of the home’s sale. Anything above
the loan amount belongs to the homeowner or their heirs.
That’s
why discussing all aspects of the option with family and
a financial representative is important. If you
are the primary caregiver and other family members are
in conflict with this idea, remind them of the costs to
take care of a loved one. If you are bearing the
major responsibility of caregiving and are the legal
representative, you are the one in charge of making the
decisions. Reluctant family may be reassured by
some instruction. Depending on the wishes of your loved
one, the will can reflect the appropriate distribution
of any finances left over from the reverse mortgage
repayment.
Caregivers must remember to entertain all options when
considering a reverse mortgage, including how the loan
will be repaid. Programs that educate caregivers are
designed to explore the pros and cons of reverse
mortgages, and offer alternative options. The reputable
mortgage company will also outlay the facts rather than
“sell” you on the loan. Their information should match
up with what you learned from education programs like
AARP’s.
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