Welcome to “Ask the Pros” – where your questions meet the wisdom of those who understand the ins and outs of reverse mortgages! If you have questions about unlocking the power of your home equity, navigating the ins and outs of reverse mortgages, or making informed decisions about your financial future, you’re in the right place.
In this exclusive series, we tap into insights and expertise directly from our wonderful team members at Longbridge Financial who are helping to shape the reverse mortgage industry each day. Our team of seasoned professionals are committed to fielding common questions, unraveling complexities, and providing invaluable insights to empower you on your financial journey.
Whether you’re a homeowner considering a reverse mortgage, a financial advisor seeking new perspectives, or are simply curious about the unique retirement tool, “Ask the Pros” is your go-to source for reliable insider information. Join us as we explore the nuances of reverse mortgages, debunk myths, and uncover strategies for leveraging home equity in retirement.
Our next featured “pro” gives us an inside look at how you can use a reverse mortgage to age in place! Meet Kelly Rogers, Certified Gerontologist & Head of Aging in Place Partnershipsat Longbridge Financial. Kelly and her team are passionate about helping seniors age in place safely and comfortably in the homes they love. We caught up with Kelly to get her insights on reverse mortgages as a funding solution for aging in place. From long-term in-home care services to essential home modifications, Kelly shares her unique perspective on planning for a secure financial future. Let’s dive into the Q&A!
Q: What can you tell us about your experience in the “Aging in Place” space?
A: My commitment to supporting seniors has shaped my entire career. My journey began in 1992 when I co-founded Respect Your Elders, a senior care agency dedicated to helping older adults thrive. In 2001, I co-founded the Adopt an Elder Foundation, further deepening my passion for advocating for seniors. This is where my passion for gerontology truly took off. I decided to study gerontology, and from the first course, I was hooked—and I never looked back!
That was the turning point when I knew I wanted to dedicate my education and career to helping seniors, their families, and those who support them as a Certified Gerontologist. This decision eventually led me to the Aging in Place space where I now focus on helping older adults across the country overcome retirement challenges and improve their quality of life with the power of home equity.
After over 30 years now in gerontology, I’ve seen that while almost everyone dreams of aging comfortably at home, few are truly preparing for it. From the beginning of my career, and still today, I have found that most people expect to retire at home with peace of mind, surrounded by community and family. Yet the unfortunate reality is, many don’t take the necessary steps to make that dream a reality.
I believe this lack of preparation may be because people understandably think insurance and programs like Medicare and Medicaid will cover all home and healthcare needs. But the truth is, most plans do not include coverage for non-medical or long-term care and assistance for seniors. And options like Medicare cover only limited periods of in-home care or facility stays.1 Another reason for this lack of preparation may be that many people find it difficult to bring up these topics with loved ones —even with a spouse.
These planning missteps can keep us from exploring valuable resources and services that support safe aging at home. Proactive, thoughtful planning is crucial for most Americans, especially considering that nearly 70% of 65-year-olds will need long-term care services or support at some point, according to the U.S. Department of Health and Human Services.2 Considerations like home modifications, home care, medications, transportation, medical equipment, meals, and more all add up—not only in cost but in peace of mind.
After so many years in this space, my biggest piece of advice to homeowners is to have a candid conversation with your loved ones sooner rather than later. Talking about your preferences for aging at home—before issues like falls, medication mismanagement, or isolation set in—is key. Then, research your options and make a plan together. This helps ensure you’re ready when the time comes, rather than scrambling during an already difficult moment.
Q: How do reverse mortgages come into play with aging in place planning?
A: Accessing your home equity with a reverse mortgage can be a valuable tool in an aging-in-place strategy, providing funds that can help you stay in your home longer and make it more accesible for future needs. By tapping into a portion of home equity with a reverse mortgage, you can access income tax-free3 money that can be used for various expenses like in-home care and home modifications—especially those that support safety, comfort, and independence as you age.
Reverse mortgages can also support ongoing and seemingly ever-increasing costs of living, like groceries, gas, healthcare costs, and other bills, without the need to make monthly mortgage payments. Borrowers of course are still responsible for keeping up with their property taxes, homeowners insurance, and home maintenance. This financial flexibility makes it easier to stay in the place you know and love—ensuring that your home remains not just a residence, but a long-term support system to enjoy throughout your golden years.
Many people hear “reverse mortgage” and hesitate, which is understandable. But today’s reverse mortgages offer significantly more protections for both you and your heirs than in the past. My recommendation to seniors and their loved ones alike is to educate themselves. Learning about the ins and outs of the loan, the different ways you can access your equity, and the strategic ways you can use the funds can help you maximize your resources and feel confident in your decisions.
Q: How can a reverse mortgage be used to fund long-term homecare services?
A: Reverse mortgages can be a powerful option for funding long-term care, especially when combined with other resources. For example, some seniors may qualify for Medicare, Medicaid, or VA Aid & Attendance to cover part of their home care, and then use a reverse mortgage to cover the rest. And, while the money can be used however you wish, many homeowners leverage their funds to help pay for in-home care services or set aside funds for future care needs. Others use the additional cash flow to avoid having existing homecare services prematurely or unnecessarily lowered or canceled. Some utilize the cash to offset the burden on family members who currently provide or pay for care. Everyone’s situation is different, but to me, that is the beauty of reverse mortgages—they can be customized to your unique goals and lifestyle.
Q: What about home modifications?
A: Reverse mortgage proceeds can also be used to retrofit, remodel, or modify your home for safety, prevention, and other needs. Modifications like adding grab bars, widening doorways, or installing stair lifts can improve the accessibility of your home and, in turn, bolster your overall safety. These updates can make a home much safer and more comfortable as you age, even helping you avoid moving into an assisted living facility.
Here’s a startling fact: only 10% of seniors are living in homes that are “aging ready” according to a 2020 study by the U.S. Census Bureau.4 And with falls being one of the top risks for seniors, according to the CDC,5 making home modifications can make a significant difference. With over $14 trillion in senior home equity in the U.S.,6 tapping into home equity for these changes can be both financially and emotionally rewarding. You can even have a CAPS (Certified Aging in Place Specialist) assess your home for free to help you understand your options and the potential costs!
The bottom line is, having a plan in place can allow you to continue living at home comfortably and safely, surrounded by the people and community that matter most in your life.
Thank you, Kelly, for sharing your experience and expertise in the Aging in Place arena with us!
If you’re interested in learning more about reverse mortgages or want to find out if you qualify, contact our team today. Our reverse mortgage consultants will get to know you and your financial situation to help you determine whether a reverse mortgage is the right fit for you. Empower your financial journey – reach out to Longbridge Financial now to make informed decisions about unlocking the Power of Home®️.
