Should you use a reverse mortgage to pay for long-term care?
By KATE ASHFORD of NerdWallet
Someone turning 65 has nearly a 7-in-10 chance of needing long-term care in the future, and many don’t have the savings to manage the cost of assisted living. But they may have a mortgage-free home — and the equity in it, giving them the potential option of a reverse mortgage to help cover care costs. Tapping home equity to provide cash flow has advantages: Home values are up, you can age in place, and the income doesn’t affect Social Security or Medicare benefits. But reverse mortgages are also expensive and eat into the legacy you’re leaving behind.
