Reverse mortgages to pay long term care costs

I just read a great article about ways to utilize a reverse mortgage to help pay for long term care costs.

I have taken a few excerpts from the article, the full article is here.

The National Council on Aging published a report showing that reverse mortgages can help an estimated 13.2 million elderly homeowners pay for long-term care, allowing many to remain independent in their homes longer.

For example, a 75-year-old borrower with a home worth $100,000 could receive a reverse mortgage that could pay a family caregiver $500 a month for almost 12 years, $1,120 a month in adult day care services for almost five years, or $2,160 a month in home care (daily care for at least four hours) for 21/2 years.

"The study shows that reverse mortgages have significant potential to help seniors pay for home health care services or to make home modifications that make independent living possible," said Peter Bell, president of the National Reverse Mortgage Lenders Association.

Full Article: Reverse mortgages can pay care costs

Article by Tom Kelly and HeraldNet