“Can a Reverse Mortgage Pay for Long-Term Care?”

“Can a Reverse Mortgage Pay for Long-Term Care?,” by Rachel Murphy, Investopedia

Quote:

“Key Takeaways: Home equity conversion mortgages can be used for any purpose, including long-term care. Once the borrower has left the home for more than 12 consecutive months, the house will be sold to repay the mortgage and interest. Joint borrowers have more leeway, as the reverse mortgage doesn’t have to be repaid until the last borrower leaves.”

 

LTC Comment, Stephen A. Moses, President, Center for Long-Term Care Reform:

Reverse mortgages could be a great source of LTC financing, including generating funds to pay LTC insurance premiums. But, alas, Medicaid exempts most home equity, so it’s much easier to qualify for Medicaid and save the home equity for heirs by dodging estate recovery. Yet, this article doesn’t even mention Medicaid. Media ignorance and bad advice on this topic are legion.