Aging in Place 3rd edition

PERSONAL FINANCE

Understanding Your Expenses: Housing Affordability Is your monthly mortgage or rent payment so high that you are left without enough money to cover your other monthly expenses ? (note: a monthly mortgage or rent payment that is more than 30% of monthly income is considered unaffordable and can leave you vulnerable if unexpected or emergency expenses come up.) Yes____ No____ If your monthly housing costs are higher than you feel you can afford, have you looked into the pros and cons of any of the following?  Using your home equity to supplement your income (such as a Home Equity Loan or Reverse Mortgage) ( Buyer beware! Although a reverse mortgage can be very helpful in improving your monthly cash-flow, make sure you research the terms thoroughly before signing. Not all reverse mortgages are the same, and some can be a bad deal.)  Refinancing your mortgage at a lower interest rate (same caveat as above)  Property Tax Deferral plan for seniors (if applicable in your state/county)  Downsizing/Finding a less expensive home

 Remodeling your current home to offer rental space for living or storage  Adding energy efficiency measures to your home to reduce utility bills  Home sharing  Remaining in your current home and reducing your other expenses  Moving to a lower cost area

Do you know the age of your appliances and other high-cost systems in your home (e.g. roof, heat pump) and their estimated replacement date(s)? Yes____ No____ Not Sure ____ Do you think you will have sufficient funds to repair or replace some of these high-cost systems when needed? Yes____ No____ Not Sure ____ If you answered “ yes ”, what is the source of funds? __________________________________________ Have you checked into appliance insurance programs? Yes____ No____ Not Sure ____

Aging in Place: Your Home, Your Community, Your Choice

Personal Finance 46