Kevin's Corner

Aging in Place

There is an expression that goes something like this: “If you read about yourself in the New York Times, then you’re famous!”  If this adage is true, then reverse mortgages just got famous.

In the April 22, 2006 edition of the New York Times, the editorial page was dedicated to the idea of Aging in Place. Aging in Place is a concept which brings together all of the efforts that allow older Americans to live in their home for as long as they can and meet the challenges of declining health and self-care at home instead of in a nursing home or in an alternate living situation. This way, older Americans can choose how to live out their years with independence and dignity.

The key challenge to accomplish Aging in Place is how to pay for it. According to surveys done by both AARP and the National Council of Aging, most Americans don’t plan for their long-term care because they believe they won’t need it. But as the editorial points out, they should be so lucky. Only 25% of homeowners 62 and older have no disabilities. The other 3 out 4 have some limitation that range from mild to severe. Some of these limitations do make it difficult for people to stay at home, but given a choice nearly 9 out 10 would prefer to remain at home if all is possible.

All this said, the New York Times went on to say that reverse mortgages are a key part of the strategy to implement Aging in Place. In fact they predicated that reverse mortgages “are bound to become a social norm as the broad middle class of aging Americans begins to face a financial squeeze.” In essence this is saying reverse mortgages will became as mainstream as conventional mortgages to purchase homes. A very strong statement but considering that 60 years ago conventional home purchase mortgages were not a mainstream product because the average homebuyer paid cash. A mortgage was only for people who did not plan properly. Can you even imagine today not using mortgages to finance real estate purchases?

If you been a reader of Kevin’s Korner, then you know I have been advocating reverse mortgages as a tool to properly plan for one’s long term care needs. It is very satisfying to see such a prestigious institution as the New York Times agree with me. This is a product whose time has come and every homeowner 62 or older should at least understand how they work and the benefits that can be derived from them. Who among us wants to end our days in a nursing home or worse lost somewhere below the poverty line. Each year millions of dollars are inherited by the next generation that could have been used to provide a better life, dignity and better care to the person that passed away. Why? Every succeeding generation in this country seems to do better than the generation before it so why do need to leave big sums of money to them at the expense of taking care of our elderly? The virtue of a civilized society is measured on how well that society takes care of their children and elderly.

You owe to yourself, your mother, your father, your grandmother, your grandfather to whom ever to help achieve this lofty goal of Aging in Place. Reverse mortgages are a big part of it, take the time to find out more. Call me today for your free, no obligation brochure about reverse mortgages. My staff and I are here to help educate you about how they work, no pressure. These are U.S. Government insured loans with lots of consumer protection built into them. Reverse mortgages are my specialty, I am not a banker or sell other financial products, I am a Reverse Mortgage Specialist.