Reverse Mortgages
A Smarter Way to Pay
for Care in Retirement
Every year, more families face the same difficult question:
How do we afford the care Mom or Dad needs, without selling the home they love?
For many older adults, staying at home is the preferred choice. It offers comfort, familiarity, and independence. But aging in place often comes with a cost. In-home care, home health aides, and necessary home modifications can quickly become expensive, and those costs often increase over time. According to Genworth’s 2024 Cost of Care Survey, full-time in-home care now averages more than $5,000 per month, while assisted living and nursing home care can cost significantly more. For many retirees, savings alone may not be enough. A reverse mortgage can provide another option.
Use Home Equity to Help Cover the Cost of Care
A reverse mortgage allows homeowners age 62 and older (55+ on propietary Reverse products) to convert a portion of their home equity into cash without selling their home or taking on monthly mortgage payments.
That money can be used to help cover:
- In-home caregivers and home health aides
- Skilled nursing or personal care services
- Home modifications for safety and accessibility
- Assisted living or future care planning
- Everyday expenses, insurance, and medical costs
A reverse mortgage gives retirees access to the equity they’ve built over time, turning their home into a flexible financial resource while allowing them to remain in the place they know and love.
Six Reasons Why Homeowners Use
Reverse Mortgages for Care Planning
Stay in the Home You Love
Borrowers remain the owner of the home and keep title, as long as it remains their primary residence.
No Required Monthly Mortgage Payments
Eliminating a traditional mortgage payment can improve monthly cash flow and free up money for care and other essentials.
Access Funds When You Need Them
Reverse mortgage proceeds can be received as a lump sum, monthly payments, or a flexible line of credit.
Pay for Care Without Draining Savings
Using home equity can help preserve retirement savings, investments, and other assets longer.
Tax-Free Proceeds
Reverse mortgage funds are generally considered loan proceeds, not taxable income (consult a tax advisor).
More Flexibility for Future Needs
Funds can be used as needs change, from part-time home care today to more advanced care later.
The HECM Line of Credit: A Powerful Planning Tool
One of the most valuable features of a reverse mortgage is the HECM line of credit. Unlike a traditional line of credit, the unused portion of a HECM line of credit grows over time, giving homeowners access to more funds in the future. This can be especially valuable for long-term care planning. Even if care is not needed today, establishing a reverse mortgage line of credit early can create a larger financial safety net later, when healthcare costs are often highest.
It’s a flexible way to prepare now for the care needs that may come later.
Improve Cash Flow in Retirement
For many retirees, one of the biggest financial challenges is balancing rising healthcare costs with fixed retirement income.
A reverse mortgage can help by:
- Eliminating existing monthly mortgage payments
- Increasing available monthly cash flow
- Reducing pressure on retirement savings
- Helping cover insurance, medications, and care expenses
This added flexibility can make it easier to manage day-to-day expenses while maintaining independence and quality of life.
Planning for the Next Chapter
In some cases, the best long-term care solution may mean moving to a home that better fits future needs. With a HECM for Purchase, eligible buyers can use a reverse mortgage to purchase a more suitable home, such as one with fewer stairs, closer access to family, or proximity to medical care, without taking on a traditional monthly mortgage payment.
This can make it easier to right-size for retirement while preserving financial flexibility.
Protection for Borrowers and Their Families
Reverse mortgages are designed with important borrower protections in place. A HECM is a non-recourse loan, which means neither the borrower nor their heirs will ever owe more than the home is worth when the loan becomes due.
When the loan is eventually repaid, typically when the borrower sells the home, moves out permanently, or passes away. heirs may choose to:
- Sell the home and keep any remaining equity
- Refinance and keep the home
- Walk away with no personal financial obligation beyond the home’s value
This structure allows homeowners to access equity without creating added financial burden for their family.
A Financial Lifeline for Aging in Place
As healthcare and long-term care costs continue to rise, reverse mortgages can offer a practical way to help fund care in retirement. Whether used to pay for in-home support, improve monthly cash flow, preserve savings, or prepare for future care needs, a reverse mortgage can provide flexibility, stability, and peace of mind. For many older homeowners, the solution to rising care costs may already be right at home.
Contact us today to learn how a reverse mortgage may help support your long-term care and retirement goals.