HOUSING WEALTH ENABLES AGING IN PLACE IN AN OLDER HOME
Discussing the article about Indianapolis’ “aging housing stock problem”, you remarked to each other that you’re right in the middle of it…. the aging housing stock problem. While you love your home — and had made the decision four years ago, when you’d both retired, to “age in place”, it’s becoming increasingly obvious that your house has been undeniably aging as well. “A large portion of housing inside the Indianapolis real estate market is aging…that means roofs, HVAC systems, plumbing, windows, and electrical systems are approaching or hitting replacement age,” Living Indianapolis points out, adding that “renovation costs have not been kind…Labor and materials have surged over the last four years.
Your own aging in place “renovation cycle” is hardly as uneven as the “long term pain” described in this piece, but it has you thinking: You had the roof replaced five years ago, but plumbing and HVAC system updates will no doubt need to have a place in your plans moving forward. Although yours is a ranch home with few accessibility issues, there are some concrete entryway steps that might later need to be reconfigured. So far, you’ve been able to cover the repairs and updates without borrowing, but the article has triggered some uneasiness.
As both you and your home advance in years, one strategy to consider would be tapping the equity built up in the property in the form of a government-backed reverse mortgage. As needed to fund the repairs and accessibility adaptations, you could tap your HECM line of credit without needing to tap your retirement funds or investment accounts. While you will continue to be responsible for insurance and upkeep of your home, there will be no need to make monthly mortgage payments.* In fact, the unused portion of your home equity will grow at the same rate as that being charged on any borrowed funds.
Precisely because the cost of labor and materials for renovation have, as the article points out “surged over the last four years”, with reverse mortgage funding, you might well choose to go ahead with the accessibility adaptations sooner rather than later.
It’s your housing wealth that can be the secret to aging in place in an “aging place”!
https://mutualreverse.com/david-garrison
*Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: www.nmlsconsumeraccess.org
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