One major consideration to make if you or your family member goes into assisted living care, is to sell your house. This is important because assisted living costs a lot of money too. By selling your house, you will have some money to pay for your assisted living fees and medical expenses. Read on to find out the top five tips for using your home’s equity to finance assisted living. You will be one step closer to living in an assisted living community in Euless, TX.
Home Equity Line of Credit
With equity, you have the potential to apply for a Home Equity Line of Credit (HELOC). HELOC refers to a bank loan that has a five- or 10-year interest. This means that if you borrow $50,000, interests are payable only for the first 5 or ten years. This is however, not an ideal option because you need to pay bank loans, which may cause you to go into debt. You may also need your family members to fund your assisted living. Hence, this is not the most lucrative choice, although a viable one.
Selling Your House
You can also choose to sell your house. This option has many benefits. For instance, you can get a large amount of money to pay for assisted living fees and medical bills. By selling the house, you can save on maintaining your house, and spare your family members the time and resources to maintain the home. Also, you do not need to pay tax with the money that you receive from selling your house.
While you may receive a large amount of money after selling your house, which you can use to pay for assisted living and medical expenses, you will no longer be able to live in that house. If you are sentimental, you may find it difficult to part with your home. This is the main disadvantage. Depending on how much you sell the house for, the money that you receive still may not help to pay for long-term assisted living too.
Rent Your House out to Tenants
This option is most advantageous because by renting your house, you can keep your home, and continuously earn money from rents. With a steady amount per month, you can use that money to pay for assisted living. If you continue to get rent money, you can pay for assisted care on a long-term basis. However, if you are not in good health, managing tenants can be a tough job. You may want to engage your family members to manage your rental procedures.
To explain how reverse mortgages work, you can get a sum of money or monthly payments if you live in a home. This is a loan against your home equity. However, once you shift to assisted living, you will no longer receive money, and you will be forced to sell your house.
Assisted care at Morada Lake Arlington is worth considering if you are a senior who requires more help with daily tasks. If you are worried about costs, with the tips that you have just read, assisted care seems more affordable does it not? Our retirement community has many experienced team members who will ensure your safety and well-being. Contact us today!