Aging in place is preferred by more older adults, according to Age Safe America.
The national membership, training and advocacy organization says doing so allows older adults to have more freedom, independence, comfort and safety. They can keep controlling their lives and have happier lifestyles.
Modifications may need to be made in the home. That’s one financial consideration to make.
“You can analyze the costs of staying home versus moving to a community-care setting. If there is no mortgage on a house, for example, there may be funding in the home equity to pay for a home assessment and modifications that can help a homeowner stay there,” Age Safe America director of education and advocacy Fritzi Gros-Daillon told RetireGuide.
According to Next Avenue, home equity loans and home equity lines are some of the best funding options for aging in place. Reverse mortgages can also be an alternative.
Sonya Edwards, broker and executive director of Branches Real Estate, explains:
Home equity loans: Edwards said home equity loans are good for one-time expenses over $15,000. These include home repairs and remodeling. The loan is dispensed in a lump sum and payments remain the same.
Home equity lines of credit: Lines of credit are a lot like credit cards. You can access the funds as needed. They generally have adjustable interest rates. Banks may offer a fixed rate for a certain time. HELOCs work best when access to funds is needed at different times.
Reverse mortgages: Resource hub Aging in Place said that borrowers 62 and older who need more money to have a comfortable retirement can use a reverse mortgage. Borrowers are required to be assessed and counseled. This makes it a relatively safe option. These loans are easier to qualify for than a traditional mortgage.
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