Reverse mortgages may make long-term care more affordable

Reverse mortgages may make long-term care more affordable

Reverse mortgages may make long-term care more affordable
Numerous studies have shown that seniors have a strong desire to age in place. As Baby Boomers grow older, finding long-term care at home is growing more important. However, paying for such care is costly and many senior citizens living on a fixed income struggle to be able to afford. Fortunately, more homeowners are finding an alternative way to pay for these expenses through the benefits of a reverse mortgage.

The Boston College Center for Retirement Research reports that nearly 25 percent of seniors will need significant help for more than three years. The unknown extent of this need and the duration of it is a major challenge for those planning for retirement. Reverse mortgages provide a degree of surity in that they can create a stream of income to help cover long-term care expenses.

In addition to extra income, reverse mortgages can eliminate monthly mortgage payments and help retirees secure their home throughout their golden years. Meanwhile, conventional conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.