I ran across another great article from the National Care Planning Council, of which I am a member. As our population ages, more and more seniors will require assistance in the home, and modifications of their homes. This provides challenges for the kids, and opportunities for senior service providers. The article below gives some great advice.
In addition, accessing the equity of their home with a Reverse Mortgage can help the seniors stay in their home longer by providing the funds to pay for senior friendly remodels, or for in-home care.
To learn more about an Oregon Reverse Mortgage, click here: Reverse Mortgage Facts.
Keeping Mom and Dad Safe at Home
Generally, elderly parents want to remain living in their own home. However, remaining in the home becomes a concern when children see their parents slowing down, perhaps even having trouble with handling stairs and doing general daily activities. Yet, with parents’ mental and physical health currently not creating problems, there seems to be no imminent need to search out support services or other accommodations for aging parents.
This is now the time to evaluate the home to make it safe and secure for your loved ones — now and in the near future — in anticipation of aging disabilities that may occur. Help and support are available. The nation as a whole is more aware of elderly needs and services and products are becoming available at an outstanding pace.
The Bureau of Labor Statistics states,
“Employment of personal and home care aides is projected to grow by 51 percent between 2006 and 2016, which is much faster than the average for all occupations. The expected growth is due, in large part, to the projected rise in the number of elderly people, an age group that often has mounting health problems and that needs some assistance with daily activities.” Bureau of labor Statistics-Occupational Outlook Handbook, 2008-09 Edition
This growing need for aides and services also encompasses
Where do you begin to make sure your elderly family member is safe and managing well in his or her home?
Visit often and at different times of the day and night. Make note of daily activities that appear challenging and where changes might be made to add safety and convenience. Remove rugs that slide — causing a fall — and move furniture with sharp edges. Set the water heater at a lower temperature. This will protect their older sensitive skin from scalds and burns. Be sure smoke detectors and carbon monoxide detectors are in place.
Bathrooms are a hazard area for the elderly. Grab bars by the toilet and shower are a must to help prevent falls. There are easy to install bars at your local hardware store if you want to do the work yourself. Another item that is good to have is a shower stool or chair.
If you are not sure of what needs to be done, consider hiring a professional. There are companies that specialize in home remodeling and accommodation for seniors. Michelle Graham of Accessible Design by Studio G4 says about senior home remodel projects,
“The main thing we incorporate in all of our projects is a careful study of needs and potential needs that may develop throughout a client’s lifespan.”
Keep in mind what future home adjustments might be needed for your parents to “age in place” in their home.
Home safety or medical alert companies provide GPS-based bracelets or pendants to track the elderly at home who tend to wander. Or the companies may provide alarm devices such as pendants or bracelets which allow the elderly to alert someone if there has been a fall or a sudden health-related attack. In the event an alarm has been triggered, a 24 hour monitoring service will alert the family or medical emergency services or call a neighbor depending on previous instructions. In addition there are companies that will install motion sensors in the home to monitor the elderly on a 24 hour basis.
Don’t forget your parents’ community as a valuable resource for helping them stay in their home. Take Margaret Muller as an example. At 82 years of age, Margaret lives alone in her small home. She manages very well with the help of her local Senior Center. The Center’s “Senior Companion” program sees that Margaret is taken to the store for groceries and other needs and checks in with her often to see how she is doing. Once a day, the Senior Center delivers a hot healthy meal to her door. Having these services and visits gives Margaret the help she needs and peace of mind that she is not alone.
Neighbors, local church groups, senior centers and city centers are some places to look for assistance. Most of the time there is little or no cost for these services.
Your state aging services unit is a valuable community resource. The National Area on Aging website www.aoa.gov states:
“AoA, through the Older Americans Act and other legislation, supports programs that help older adults maintain their independence and dignity in their homes and communities. In addition AoA provides funding for a range of supports to family caregivers.” Some of the programs the site lists are: “Supportive Services and Senior Centers Nutrition Services National Family Caregiver Support Program Grants for Native Americans Nursing Home Diversion Grants Aging & Disability Resource Centers Evidence-Based Disease Prevention Long-Term Care Planning Alzheimer’s Disease Grants Naturally Occurring Retirement Communities”
“AoA, through the Older Americans Act and other legislation, supports programs that help older adults maintain their independence and dignity in their homes and communities. In addition AoA provides funding for a range of supports to family caregivers.”
Some of the programs the site lists are:
“Supportive Services and Senior Centers
Nutrition Services
National Family Caregiver Support Program
Grants for Native Americans
Nursing Home Diversion Grants
Aging & Disability Resource Centers
Evidence-Based Disease Prevention
Long-Term Care Planning
Alzheimer’s Disease Grants
Naturally Occurring Retirement Communities”
A few thoughts on hiring home care aides or live-in care givers.
The classifieds are filled with people looking for work as aides to the elderly. Many of these aides are well-qualified, honest people who will do a good job; but, of course, there will be some not so reputable. If you are looking to hire someone, be sure you interview and check references and qualifications. You will be responsible for scheduling that person and doing payroll and taxes as well. Be very sure you hire someone trustworthy, as the elderly seem to trust these helpers more than they should and therefore can easily be taken advantage of.
A professional home care service will eliminate your employment concerns. Professionally-provided aides are usually bonded and service is guaranteed. Home care companies take care of the scheduling and payment of their employees. Home care companies cater to the elderly in their homes by offering a variety of services. The National Care Planning Council lists many of these companies throughout the country on its website www.longtermcarelink.net .
These providers represent a rapidly growing trend to allow people needing help with long term care to remain in their home or in the community instead of going to a care facility. The services offered may include:
Thomas Day, Director of the National Care Planning Council states,
“Care in the home provided by a spouse or a child is the most common form of long-term care in this country. About 73% of all long term care is provided in the home environment typically by family caregivers.”
As their caregiver, you can make the difference in the quality of life for your aging parents and if staying in their home is a possibility, you have the resources to make it happen.
A Reverse Mortgage can be helpful to help pay for these expenses if there are not other funds available. Feel free to contact me if you have any questions regarding whether or not a Reverse Mortgage is right for your situation.
Larry Morris, CMPS www.PDX-Mortgage.com www.OregonReverseMortgageNews.com larry@PDX-Mortgage.com 503-431-0096
In a recent article on caregiver burnout (shown below), many seniors are finding it hard to keep up with the stress associated with care for their loved ones. In some cases, a Reverse Mortgage can provide the funds to allow a loved one to stay in their home and either hire professional help to come in and provide care, provide funds for Adult Day Care, or provide the funds to allow the loved one to go into a professional treatment facility while the other remains in their home.
All too often it is felt that the only option is to sell the home to provide for the funds for treatment, or that assets need to be liquidated in order to qualify for a medicaid facility. If there is adequate equity in the home, a properly structured Reverse Mortgage can provide the funds to solve this dilema.
Contact me if you would like to discuss this. 503-421-0096
Caregiver Burnout - Adult Day Care Services to the Rescue
If you are a primary caregiver for a loved one, you are well aware of the daily stress and emotional and physical impact it can have on your health.
Susan learned this first hand when she and her husband, Tom, brought his Mom home to live with them. Mom suffered from dementia and had to be watched constantly. Susan found that when you become a caregiver, you start by giving up a few things you usually do for yourself to make up for the time needed for caregiving. Even though your service is one of love and you are willing to do the sacrifice on behalf of your loved one, you find yourself giving up a lot more as time goes on.
“As a caregiver,” Susan laments, “You are often frustrated that you can’t do enough for your loved one and so guilt and feelings of inadequacy set in. Couple that with feelings of being unduly burdened, of resentment, of stress and then of more guilt at having those feelings.”
She continues, “Now don’t get me wrong, I am very glad that I spent those years in caregiving. There were many cherished moments with Mom that only I experienced.”
In order to enjoy those moments and sustain your caregiving momentum, a little respite is essential.
An article posted on About.com by Carrie Hill, PhD states:
“Caregivers who use respite care often tell me that although caregiving is one of the hardest jobs they’ve ever had, they wouldn’t trade the experience for anything. Helping a family member or close friend who has Alzheimer’s disease can provide a sense of purpose and great satisfaction. Still, the emotional and physical demands of caregiving make it hard to be a caregiver 24 hours a day, 7 days a week. Without respite care — a temporary break from the demands of caregiving — you may be more susceptible to the effects of caregiver stress, such as depression, exhaustion and other health problems.
Carrie Hill, PhD, About.com “Why Caregivers Need Respite CareGiving Yourself a Break Helps You and Your Loved One” Updated: August 3, 2008
Be on the lookout for caregiver burnout. It can creep up on you without your noticing it. Caregiver burnout symptoms can include:
•depression •anxiety, irritability, or anger •feelings of exhaustion •self-criticism •Withdrawal from usual activities •trouble with handling caregiving responsibilities •substance abuse
The need for support for caregivers at home has received national recognition. State Human Resource Departments and Area Agency on Aging Services are offering more counseling and respite services for caregivers. The ARCH National Respite Services is also an organization that is reaching out to educate and support caregivers in many states. There is, however, one service that is highly valuable but very underused:
Adult Day Care to the Rescue!
Adult Day Care respite is two-fold. It gives the caregivers much needed time to themselves and gives their loved ones social and interactive therapy with their peers.
Many adult day services offer such things as:
•Social activities; music, movies, crafts, excursions •Meals •Fellowship support •Assistance with daily living •Nursing care •Help with activities of daily living •Medications •Physical therapy •Transportation
Finding an Adult Day Services provider takes a little investigating on your part. It is important to know what you are getting and that your loved one is comfortable with his or her new surroundings.
First: Ask for recommendations.
Check with your local Senior Center, Area Agency on Aging Services, Mental Health Centers, Doctor, Clinic, Family, Friends and neighbors. The best recommendation is by someone who has used the adult day services or is familiar with those who run it.
Second: Call and ask the facility to send you information.
Ask specifically to be sent the application, eligibility requirements and payment information.
Ask to see the calendar of activities, menus, hours and days of operation are needed to be sure to fit your schedule.
Ask about availability of transportation to and from the location and what is the cost.
Ask who runs the facility. Is it private, non-profit or a franchise or part of an assisted living facility or a nursing home?
Third: Visit the Adult Day Care facility.
Go visit the provider location along with the person you are caring for.
See if the staff is friendly.
Check that it is clean and odor free.
Ask about the experience of the staff.
Request a list of references.
Fourth: Find out the cost and payment requirements.
A survey from NCOA/NADSA provides the following information on fees:
“Fees for Adult Day Care providers range from $25 per day to $70 per day, with the average around $50 per day. Many facilities provide services with a sliding fee scale.”
One last word of advice. Don’t feel guilty about taking your loved one to adult day care.
Susan’s mother-in-law complained bitterly about leaving home and going to the adult day care facility, expounding on how Susan just didn’t want her around anymore. This only increased the guilt Susan was already feeling, but Susan was also determined that she needed the respite time the day care would provide and they pressed forward. That evening as Susan picked up Mom and helped her into the car, Mom — who suffered from dementia — exclaimed, “That was the nicest resort I have ever been to!”
To learn more about the AOA National Caregiver Support Program go to:
http://www.aoa.gov/prof/aoaprog/caregiver/caregiver.aspx
The National Care Planning Council supports Caregivers and Adult Day Care Providers
http://www.longtermcarelink.net/a7adultdaycareservices.htm
For more information on how a Reverse Mortgage can help you and your loved ones, please contact me at 503-421-0096, larry@PDX-Mortgage.com or go to my website at Oregon Reverse Mortgage
As of 1/1/2009, seniors age 62 and older can use a federally insured Reverse Mortgage to purchase a home. Under the same HECM program that is being used by many seniors to access the cash equity in their home, seniors now have another tool to use when they look at purchasing a new home.
The FHA insured HECM is a huge improvement to the old Fannie Mae Homekeeper that could be used to purchase a home.
As it currently stands, a senior looking to purchase a home would either have to pay cash or qualify for a mortgage based on their fixed income. For many, this would liquidate their savings or prevent them from buying a home that they felt comfortable living in.
With the new program, a senior could either purchase more home without having a monthly mortgage payment, or free up a significant amount of their cash to live on or invest elsewhere.
While we don’t know all of the details, we can assume that the lending limits for purchases will be similar to the limits for refinances. If so, here are some examples of what you could expect:
A 62 year old borrower could purchase a $250,000 home with an approximate down payment of $120,000. There would be a lien against the property, but there would be no monthly mortgage payment. As with a reverse mortgage used for a refinance, the loan, plus interest would be due and payable upon death or 1 year after moving out of the property.
If this same borrower was 75, the $250,000 home would require a down payment of approximately $90,000.
Look for more details here as the dust settles. Technically, we can’t even take an application until 1/1/09, so I don’t have a calculator that will give me more exact figures.
That said, if you are a senior, and looking at purchasing a home next year, you should at least consider using a Reverse Mortgage.
Call me, Larry, if you have any questions. 503-421-0096
Jack and Betty own a duplex that is completely paid off. At 79, Jack is still driving truck but is seeing a downturn in his income due to the economy. Last year they made over $90,000 between driving, a couple of pensions and SSR. They haven’t rented out the 2nd unit in the duplex for a few years as there isn’t enough room in the driveway for more then 2 cars. Parking on the street disappeared several years ago when the city widened their street.
Jack’s concern was to be able to pave over the yard and create more parking, and for Betty to have access to cash should she need it if Jack were away from town on a trip. Betty was concerned about the ability to pay their bills with Jacks reduction in work. They both wanted to access cash as they need it rather then tap all of the equity at one time. They also would like to be able to leave some money to a Niece and her husband.
We looked at taking out a traditional Equity Line of Credit. While it would have been the least expensive option up front, it would have required them to make a monthly payment. At that point, the rent from the other side of the duplex would have covered the new mortgage debt with a few hundred dollars left over.
After talking with Jack and Betty, my solution was to use a HECM 175 Reverse Mortgage with a cash draw in an amount sufficient to make the needed repairs to their property and give nice cushion for the remainder of the year. This also left them with a sizable line of credit that will continue to grow as their property appreciates.
This loan is setup so that if they use their equity wisely, and if the home appreciates at 5% per year, their equity will never be exhausted. In fact, if they live to age 100, there will still be roughly $357,000 in equity after paying off the loan balance.
While Jack and Betty didn’t “need” a Reverse Mortgage, they have found that it has allowed them to do some things that need to be done without selling their home or making drastic cuts to their living. It also is giving them the peace of mind in knowing that they have unlocked the equity in their home should they need it.
While this isn’t sophisticated mortgage planning, it is solving a real life problem for real clients.
Call me if you would like to see if a Reverse Mortgage is right for you.
Whether or not we are in a recession or just feeling the effects of inflation, the bottom line is things are more expensive then they used to be. And I’m not talking about nickle candy bars costing a dollar.
Gas is now over $4 per gallon and expected to keep going higher. This has affected almost everything we buy since it takes trucks to get most of our goods to market. One solutions seems to be to switch to ethanol. Many farmers have jumped onboard and are growing corn to sell for fuel. This has added to the rise in cost of food as less land is available for growing crops.
The end result is that most people are feeling squeezed by the economy and having problems making ends meet. Senior citizens are not immune to this either.
In a recent poll, AARP reports, in it’s June 08 Bulletin, that 69% of seniors age 50-64 indicated that they are finding it more difficult to pay for essential items like food, gas and medicine. 59% of seniors age 65 and older reported the same. The scary fact is that 26% of seniors age 50-64 and 19% age 65 and older have prematurely withdrawn funds from the retirement accounts. This is alarming!!
For those seniors who haven’t retired yet, this will drastically affect their ability to enjoy their retirement, or force them to work longer. For those already in retirement, pulling from the principle of their retirement accounts throws off track their retirement income. For many, the goal is to live off the interest and leave the principle alone.
Financial planners I speak with tell me that most of their clients have done a good job planning for retirement, but they couldn’t anticipate $4 per gallon gas and the trickle down impact of that. They are fearful for their clients future. For many, a Reverse Mortgage can provide a solution to this problem.
One of the benefits of the recent Real Estate boom was an unexpected increase in property values. For those who have owned their homes for more then 5 years, and didn’t pull the equity out, there has been an incredible increase in equity. This also wasn’t part of their retirement plans. The usual “expected” property value increase is 4-6%. Over the last few years we saw values increase in some markets by 25% or more per year for several years in a row.
I believe that many seniors can benefit from tapping into this unexpected gain to counter the impact of the current economic woes.
In Oregon, we are still seeing modest increases in most markets. More then anything, we are getting back to normal. Many of us however are sitting on a small fortune. The question is whether or not it can easily be accessed. Following are several ways:
Family Gifts or Loans - While this is probably the preferred method, many seniors will not ask their kids for money. Also, most of us are in the same situation. In order to help others we have to give up something ourselves. For many, helping their parents means delaying retirement themselves.
Home Equity Line of Credit- This is an inexpensive way to unlock the equity, but as you use it, you have to pay it back. The more you use, the larger your monthly payment will be. If you stop making a payment you risk going into foreclosure. If you know for sure that you will be selling you place within a year or two, this is still one of the best options.
Sell and move to a smaller home or condo - This can be a good solution if you truly want, or need to move, but it also comes with expensive closing costs on 2 properties and and you will leave many memories behind. This may also be your only solution if you don’t have a lot of equity in your property.
Reverse Mortgage - For many, this will be the best solution. A properly structured Reverse Mortgage will improve the quality of life for those who find themselves short of cash or concerned about the future.
These are just a few exanples of how a Reverse Mortgage can help you or your loved ones through these trying times.
My advise? Call me. Let’s discuss your options and see if a Reverse Mortgage is the best option.
Larry Morris, CMPS 503-476-3854
If you are an Oregon Senior Citizen and are having problems making your county property tax payment, the State of Oregon Property Tax Deferral Program may be the solution for you. If you qualify, you can defer your taxes until a later date. To qualify:
If you are married and apply jointly with your spouse, you both must be 62 years old on or before April 15. If only one spouse is 62, you must file your application as an individual.
Joint owners—Two or more people may apply for deferral as joint applicants. Both must be 62 years or older.
The taxes are deferred until you sell, move out or die…very similar to the events that would cause a Reverse Mortgage to become due. The deferred taxes accumulate at a rate of 6% interest per year, which is often higher then the Reverse Mortgage interest rate.
The Tax Deferral program can be used in conjunction with a Reverse Mortgage to free up even more cash on a monthly basis, or they can be used separately.
If you are behind on your county property taxes, a Reverse Mortgage can be used to bring you current. We will then help you get enrolled in the State Tax Deferral program if you qualify. If you don’t qualify for the Tax Deferral Program, a Reverse Mortgage might be able to help you make your payment.
If you would like more information on this program, feel free to give me a call.
Larry Morris
