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Using Home Equity as a Long Term Care Financing Option
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.
- Read more about reverse mortgages. Here are some sources to start with:
- Take a community education class to learn more about reverse mortgages.
- Determining the availability and feasibility of reverse mortgages in your area by contacting a HUD Approved Housing Agency Counselor.
- If you decide to pursue a reverse mortgage, contact your local lending institution. They will be able to help you contact a lender who works with reverse mortgages.
Determine your later life financial goals.
Discuss your goals, beliefs, and plans with family members.
Is home equity a realistic long term care financing option for you and your family?