My father is 88 years old and needs 24 in home care but he's about to run out of savings. His house is fully paid for so I'm wondering if this is a good option and if others have good experiences to share.
Birdhouse, back when my own Dad needed around the clock care in Assisted Living, it was my Dad who said SELL. Knowing the equity was safely tucked away in stocks and savings gave him a sense of financial security.
Otherwise the house would have sat empty. Dad would still need to pay real estate taxes.... pay for utilities.... hire someone to mow during the season.... hire someone to shovel snow as the sidewalk was a school bus stop waiting point.... have someone go in weekly to check the house to make sure there were no water leaks and the sump pump was working.... and paying much more for homeowner's insurance since the house was now high risk being vacant [not all insurance companies will renew such insurance].
Plus, one doesn't know how the real estate market would be a year from now. There were times in past history where the houses were worth less then the mortgage :(
Now if the house is one where all the children grew up, I know it would be very tough to sell. But when it comes to Reverse Mortgages, one has to remember it is a "loan" that needs to be paid back, along with interest, and fees. And when Dad passes, the loan becomes due and payable in full.
One has to balance out the pros and cons, and decide what would be best.
Personally, I am not big on reverse mortgages in most situations. In view of his dementia, I gather that you realize his needs will only increase. When I was in this situation, (and like 97yearold says above) I found that a great memory care AL cost less than my Mom's apt in indep. living + live in help! Thinking about her increasing needs, I opted for the memory care and sold her apt. Do you live in his house as well? If so, that may change your view. But when folks run out of savings, it is time to change the living arrangements. Adding property taxes, utilities and even basic upkeep it is often less expensive to have a right sized apt than a full house. I urge you to consider ALL options both care wise and financially.
Birdhouse Most folks say stay away from RM but it depends on your circumstances. The fees are very heavy. The home has to be insured and maintained and taxes paid. Your dad has to qualify. Visit an elder attorney to go over your dads options and see what it takes to get him on Medicaid. State laws are different. You might want to do the math on what three caregivers with 8 hr shifts would run your dad and compare that cost to a memory care facility. There are many posts on this website about the reverse mortgage experience. You can try using the search but it hasn’t been working the last few days. I’m sure you’ll get more answers tomorrow when more folks are online.
Otherwise the house would have sat empty. Dad would still need to pay real estate taxes.... pay for utilities.... hire someone to mow during the season.... hire someone to shovel snow as the sidewalk was a school bus stop waiting point.... have someone go in weekly to check the house to make sure there were no water leaks and the sump pump was working.... and paying much more for homeowner's insurance since the house was now high risk being vacant [not all insurance companies will renew such insurance].
Plus, one doesn't know how the real estate market would be a year from now. There were times in past history where the houses were worth less then the mortgage :(
Now if the house is one where all the children grew up, I know it would be very tough to sell. But when it comes to Reverse Mortgages, one has to remember it is a "loan" that needs to be paid back, along with interest, and fees. And when Dad passes, the loan becomes due and payable in full.
One has to balance out the pros and cons, and decide what would be best.
Do you live in his house as well? If so, that may change your view. But when folks run out of savings, it is time to change the living arrangements. Adding property taxes, utilities and even basic upkeep it is often less expensive to have a right sized apt than a full house. I urge you to consider ALL options both care wise and financially.
Most folks say stay away from RM but it depends on your circumstances.
The fees are very heavy. The home has to be insured and maintained and taxes paid. Your dad has to qualify.
Visit an elder attorney to go over your dads options and see what it takes to get him on Medicaid. State laws are different. You might want to do the math on what three caregivers with 8 hr shifts would run your dad and compare that cost to a memory care facility.
There are many posts on this website about the reverse mortgage experience. You can try using the search but it hasn’t been working the last few days. I’m sure you’ll get more answers tomorrow when more folks are online.