Tips on How to Pay for Senior HousingPosted By HarborChase on February 8, 2020
If you are in the beginning stages of seeking senior housing options, you may be curious about how you can finance these services. Although moving into a senior living community is typically regarded as an excellent choice for retirement, financing options continue to be a major concern for many.
HarborChase Senior Living understands this concern. While senior housing can place you in a community that offers a wide array of activities, amenities, security, and a new sense of comfort during your retirement, we understand the sticker shock that can come with the costs associated with senior housing. HarborChase Senior Living wants you to enjoy your retirement to the fullest, which is why we are providing a few tips and suggestions on how to pay for senior housing.
Understanding Your Budget
The first step in deciding how you can pay for senior living is establishing your budget. As you determine your budget and factor in certain items, your budget may begin to broaden your options regarding senior housing.
Homeownership can be fantastic, but it can also come with many hidden costs (repairs, maintenance, upgrades, etc.) that drastically impact finances. Most senior living communities’ monthly fees cover maintenance, utilities, housekeeping, and scheduled transportation. While living at home can be fantastic, it can cost us much more than we realize in the long run.
At HarborChase, our communities offer amenities that you may not have access to otherwise, such as social events and wellness programs. While each HarborChase Senior Living community is unique, our communities all take an unparalleled approach to an elevated living experience.
Selling Your Home
Depending on your situation, you may currently own your home, and it is paid off. If this is the case, when you begin to consider how to pay for senior housing, selling your home is an option that can help provide extra funding towards your retirement goals.
We understand that selling your home may not be in your plans, and you may be hoping to keep the house to pass on to a child or family member. If this is the case, you could utilize a reverse mortgage. A reverse mortgage is a mortgage loan, usually secured by a residential property that enables the borrower to access the unencumbered value of the property. These loans allow you to pay them off at a later date. However, even though you don’t have to pay them off immediately, reverse mortgages do begin accruing interest. A reverse mortgage could be a possible solution regarding how to pay for senior housing. We encourage you to speak with a professional regarding your options before taking any steps towards a reverse mortgage.
If you are seeking to sell your home, you will likely find yourself needing a new place to live while it is listed on the marketplace. A bridge loan may be your best option during this scenario, as this type of loan is meant to bridge the gap between a more substantial, long-term financing option. A bridge loan can last anywhere from a few weeks to upwards of a few years, and it can be the perfect way to help pay for your new living situation as you wait for your home to sell.
Retirement Accounts and Extended Options
Knowing how to pay for senior housing isn’t simple, and there are many different avenues you can take while going through this journey. For many, the best option comes from a retirement account, like a 401k. If you were working after 1978, when 401ks were first introduced, you likely started and built a healthy nest egg. Retirement accounts can be a great way to help pay for senior housing. Make sure to take them into account, as well as liquidating any assets (investments, stocks, etc.) that may no longer be needed.
Discovering how to pay for senior housing that fits your situation may take a little bit of time. Seeking a financial adviser may help tremendously, as they can ensure you have considered all of your options and that you are making smart financial decisions for yourself and your family.
At HarborChase Senior Living, we pride ourselves in our industry-leading hospitality. We want to help you enjoy every moment of your retirement. Our skilled professionals embrace an “At Your Service” mindset and possess an unwavering commitment to continuously seek opportunities for innovation and improvement. Find the right HarborChase community for you and start celebrating senior living!
Categories: Finances & Budgeting