By Judd Matsunaga, Esq.
Is 90 the brand new 80??? A latest evaluation finds that many People who attain age 90 and past say they’re in good well being (JAMA Inner Medication, “Most 90-Somethings Really feel Wholesome,” March 20, 2017).
What’s extra, the variety of People age 90 years or older is anticipated to greater than quadruple by the yr 2050 (based on the U.S. Census Bureau). Few 90 + within the examine confirmed indicators of melancholy or cognitive issues, though they took lots of medicines and had issue getting round.
A 90-year-old girl can count on to reside for roughly 4 to five extra years, based on the newest information. Research present that ladies have the next likelihood of reaching 100 years previous in comparison with males, with some analysis indicating a 11.4% likelihood for a 90-year-old girl to succeed in 100. Nonetheless, particular person life spans can differ considerably based mostly on varied elements resembling well being, life-style, and genetics.
Surveys present that roughly 75-90% of older adults want to stay of their present residences as they get older, i.e., growing old in place. In keeping with a 2013 Nationwide Institute of Well being (NIH) examine of people aged 90 and older, near 55% of 90-year-olds reside independently (with or with no partner or paid caregiver). One other 23% reside in assisted dwelling or board-and-care services (that are thought of a type of impartial dwelling), and 14% reside in a nursing dwelling. Leaving the ultimate 8% dwelling with family.
“But some older adults could wish to transfer however can’t,” says Linna Zhu, a analysis affiliate on the Housing Finance Coverage Heart on the City Institute. “A portion of seniors are growing old in place however are additionally caught in place,” Zhu observes. “They don’t have the monetary assets to assist them transfer or relocate or downsize, or they can not afford to reside within the nursing properties.” (Supply: AARP, “Share of Older Adults Who Wish to Age in Place Stays Regular,” Nov. 22, 2022)
Whether or not you’re “growing old in place” or “caught in place,” this Rafu Shimpo article is to encourage you to make your private home as secure as attainable to age in place. Be sure your private home has options that can mean you can stay there as you become older (and probably weaker), like a rest room on the principle stage (80%), or a room on the primary flooring that might be used as a bed room (82%). Many respondents stated they would wish to make adjustments to remain at dwelling comfortably and safely.
What sort of adjustments? A 3rd of all ballot contributors stated they would wish to switch their present residence in order that they or a beloved one might proceed to reside there if that they had bodily limitations:
- 79% stated they would wish to switch loos with seize bars or no-step showers.
- 71% stated their dwelling has inside and out of doors accessibility points.
- 61% stated they would wish an emergency response system.
- 48% stated they would wish smart-home units, like a voice-activated dwelling assistant or a doorbell digicam.
“Modify my home???” you would possibly ask. “That sounds costly.” You guess! A walk-in tub might price $5,000-$10,000. The typical price of a wheelchair ramp might be $2,000-$5,000. Let’s additional say you want part-time dwelling care, e.g., 20 hours/week at $35 per hour to assist prepare dinner, clear, and infrequently drive you to the physician. That’s $700 per week instances 4 weeks a month — you’ll want a further $2,800 monthly.
The typical Social Safety verify for retired staff is $2,005.05 as of June 2025, (based on the Social Safety Administration (SSA) Month-to-month Statistical Snapshot). And the 2025 Social Safety cost-of-living adjustment (COLA) is 2.5%. Because of this your Social Safety advantages have solely elevated a mean of $50 monthly (that’s only one lunch date with a good friend).
“Say Judd, I wish to age in my own residence. Nonetheless, my financial savings are dwindling. If I would like a brand new roof, or I would like part-time dwelling care to stay safely at dwelling, what can I do?” The reply is straightforward — TAP THE EQUITY in your house. If you happen to personal your individual dwelling, you’re “sitting on a gold mine!” If you’re 62 years or older, you possibly can pull cash out of the fairness in your house, and you’d by no means must pay it again. Due to this fact, you possibly can’t lose it.
You would possibly say, “My daughter informed me by no means to get a reverse mortgage on my dwelling.” In case your grownup daughter lives with you, takes care of you, outlets and cleans for you, I might agree. Actually, if that’s you, I might encourage you to see me relating to gifting your private home to your little one now earlier than you die.
Why? Prop 19 remains to be the regulation. Nonetheless, sooner or later (maybe quickly) we’ll lose property tax advantages for parent-child transfers. It might save $10,000 in property taxes every yr your daughter owns your private home after you die. If she lives to be 90 years previous, that might be a whole lot of 1000’s of {dollars}!!!
If that’s not the case, do you know that the common dwelling in Los Angeles is value a $1 million? (based on Redfin.com) Some Rafu Shimpo owners have already chosen to promote their properties and have moved into a elaborate retirement dwelling like Nikkei Senior Gardens in Arleta, Hollenbeck Palms in Los Angeles, or Atherton Baptist Houses in Alhambra. Some persevering with care retirement communities (CCRC) will even promise to look after you for all times in change so that you can deed your private home to them.
Now, I’m not suggesting that you simply promote your private home. Once more, the aim of this Rafu Shimpo article is to encourage you to age in place, however make your private home as secure as attainable so you possibly can stay at your individual dwelling — safely.
Have you ever accomplished the maths? Over the previous 10 years, the common dwelling appreciation within the U.S. has been round 5-7% yearly (probably a lot greater in Los Angeles). This implies a house’s worth might enhance by roughly 63% to 100% over a decade, based on Redfin.
In case your $1,000,000 dwelling appreciates 5% this yr, that’s $50,000, or $4,100 monthly. We simply stated above that in the event you want part-time dwelling care, e.g., 20 hours/week at $35 per hour to assist prepare dinner, clear, and infrequently drive you to the physician — that’s a further $2,800 monthly. If you happen to’re 90 and hoping to have one other 4-5 years of first rate well being, make these extra remaining 4-5 years the perfect they are often. TAP THE EQUITY in your house.
In different phrases, I’m not saying that it is best to promote your private home. I’m saying maintain your private home, e.g., maintain your promise to provide your kids a million-dollar dwelling as their inheritance. It’s simply that the appreciation of your private home is now being transformed into money so you possibly can stay safely in your house for so long as attainable with out being an excessive amount of of a “burden” in your kids. Maybe you would possibly wish to transform (replace) your kitchen or rest room.
So, what precisely is a reverse mortgage? A reverse mortgage is a sort of mortgage in opposition to your own home. However in contrast to with a standard mortgage, you don’t make month-to-month funds to a lender. As a substitute, the lender pays you, primarily working in “reverse,” because the identify suggests. You possibly can select to obtain month-to-month funds for a set time period (“time period”), or for so long as you reside within the dwelling (“tenure”); or a one-time lump sum; a line of credit score; or a mix of those choices.
Though you don’t make any funds on a reverse mortgage, curiosity and charges do accrue. Because of this your mortgage stability will enhance over time, since you aren’t making funds on the debt. You might be nonetheless answerable for paying property taxes, owners insurance coverage, HOA dues and assessments. You’re additionally answerable for maintaining the property maintained.
How do you qualify? Though you don’t have to have your revenue analyzed like a standard mortgage, you have to be 62 years or older.
- Personal a house with ample fairness.
- You need to occupy the home.
- Should keep present with taxes and insurance coverage.
- Can’t have extraordinarily low credit.
“With a reverse mortgage, the borrower doesn’t must make mortgage funds for so long as they reside within the dwelling and reside within the dwelling as their main residence,” says Lori Trawinski, director of finance and employment on the AARP Public Coverage Institute. That requires dwelling within the dwelling a minimum of six months out of the yr. Nearly all of reverse mortgages are dwelling fairness conversion mortgages (HECMs), that are insured by the Federal Housing Administration (FHA).
HECMs account for roughly 95% of excellent reverse mortgage loans. You’re additionally required to obtain counseling from a U.S. Division of Housing and City Growth (HUD) licensed reverse mortgage counselor. The counselor will clarify how reverse mortgages work and evaluation the dangers and cost choices that can assist you make an knowledgeable resolution — it sometimes prices round $125.
However is a HECM a secure monetary device? “YES, it’s,” says Trawinski. The HECM is an FHA mortgage product. Which means the FHA has endorsed it and oversees it. Since it’s geared towards seniors, they’ve positioned sure safeguards in place to guard seniors. They won’t permit lenders to mortgage you greater than you possibly can deal with given your private home worth and fairness. They gained’t even allow you to be accredited for the mortgage till you full a counseling session with an FHA accredited, third-party counseling group. FHA desires to just be sure you fully perceive the mortgage and that there are not any misunderstandings.
So how can this be? It sounds too good to be true — is it for actual? Sure, it’s actual. The best way it really works is that because you don’t instantly pay principal or curiosity towards the mortgage, the curiosity is added to the principal stability and that stability will develop over time. The best way the lender will get their a refund is that you’ll pay the mortgage again once you promote the home (or die). This lets you use the cash that’s locked into your fairness now when you want it.
In conclusion, there could be many causes to make use of a HECM. Possibly your bills are rising, and your revenue isn’t, so that you’re depleting your financial savings quicker than you need. It is best to positively work with a reverse mortgage specialist to see if a HECM is one thing that can be just right for you.
If you need a reverse mortgage advisor that’s a part of the JA group, strive giving Scott Shimamoto, senior mortgage mortgage officer at Journey Mortgage Advisors in Pasadena. It might be a lifesaver for you. Shimamoto says, “Your deal is not any joke to me,” and could be reached at (626) 399-1525.
Judd Matsunaga, Esq., is the founding companion of the Legislation Workplaces of Matsunaga & Associates, specializing in property/Medi-Cal planning, probate, private damage and actual property regulation. With places of work in Torrance, Hollywood, Sherman Oaks, Pasadena and Fountain Valley, he could be reached at (800) 411-0546. Opinions expressed on this column usually are not essentially these of The Rafu Shimpo.
