I have an elderly relative soon to need assisted living or long term care due to senility. She (76) and her mate (86) own a house and 3 cars. The house is in her name, but her husband has a lifetime right. Banking accounts are separate, and she does not have a lot of savings. We were wondering about a reverse mortgage which would allow the husband to live in the house and would fund her assisted or long term care needs? Would the reverse mortgage allow the husband to live at the home if she died before him? Are any alternate options available that would be better. No living children, I'm a niece trying to ensure her care.
I understand your relatives want to stay in thier house - it has been their home, it represents security. However it sounds like one of your relatives will soon leave the house. Quite often when the first leaves, soon after the second leaves also. Keeping a house takes effort. Another option is to enter a retirement home. These are not in every city, but they are arround. These are not assisted living or nursing homes.The funding of this situation might well be paid for by selling the house out right and then taking maybe 8% of the assest base. That is a rather high amount, but the your parents probably won't be needing much money in 25 years.In my area of the country, reverse mortgages have much higher interest rates, closing costs, etc. then conventonal mortgages. All this translates into a worse deal.
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