In-Home Care and a Reverse Mortgage

In-Home Care and a Reverse Mortgage

Prior to the COVID-19 pandemic, many seniors made the decision to age in place.  According to an AARP survey, 76% of Americans 50 years and older said they want to remain at their current residence for as long as they can.1  With many nursing homes and assisted living facilities impacted by the pandemic, it is understandable that seniors may look to age in place for as long as possible.  By making the decision to stay in their homes, it is possible that they may need in-home care and will need a way to pay for it.

What kind of care does in-home services include?

In-home care for seniors can differ based on their health issues and/or what help is needed.  Some may find they need a home health aide when recuperating from illness or injury, while others may need the help of homemaker services to assist with daily activities, such as meal preparation and laundry.

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What are the costs for in-home care?

A 2019 Genworth Cost of Care Survey shows the national average cost of homemaker services is $22.50 per hour ($4,290/month).  Homemaker services usually include tasks to help a person with daily duties like laundry, grocery shopping and light housework. A home health aide charges an average of $23 per hour ($4,385/month), according to the survey. Home health aide services might include giving medicine at scheduled times, supervising and monitoring chronic illnesses and helping with walking aids.3

How can a reverse mortgage help with the costs of in-home care?

A reverse mortgage maybe an option for seniors when there is a need for in-home care.  A reverse mortgage loan allows qualified homeowners, who are 62 or older, access to a portion of their home’s equity as cash. Borrowers do not have to repay the loan as long as they continue to live in the home as their primary residence, pay property taxes and insurance, and maintain the property according to the Federal Housing Administration (FHA) requirements.2

A reverse mortgage may be a good option if the homeowner wants to continue to live in their home but needs assistance that in-home care can provide.  There are a few options in which the funds from a reverse mortgage can be disbursed. One is through a lump sum which is only available with a fixed-rate loan.  They can select to receive equal monthly payments (Tenure), equal monthly payments for a fixed period of months (Term), draw at any time and in any amount of their choosing from the preset amount (Line of Credit), a combination of a line of credit plus scheduled monthly payments (Modified Tenure), or a combination of line of credit plus monthly payments for a fixed period of months (Modified Term).  There are additional disbursement options available with adjustable rate reverse mortgages.

If you’re interested in learning how a reverse mortgage may help with the cost of in-home care, call 1-800-976-6211 to speak with a licensed loan officer.

Important Disclosures:


2 You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.