Savvy Senior – March Columns
- Is a Reverse Mortgage a Good Idea?
- When to Worry About Your Memory
- How to Replace Important Lost Documents
- Are You at Risk for Kidney Disease?
Is a Reverse Mortgage a Good Idea?
Dear Savvy Senior,
What can you tell me about reverse mortgages? When my husband passed away last year my income dropped almost in half, and I’ve been struggling to keep up with my monthly living expenses.
- Senior Homeowner
Dear Senior,
For retirees who own their home and want to stay living there, but could use some extra cash, a reverse mortgage is a viable financial tool, but there’s a lot to know and consider to be sure it’s a good option for you.
Let’s start with the basics.
A reverse mortgage is a unique type of loan that allows older homeowners to borrow money against the equity in their house (or condo) that doesn’t have to be repaid until the homeowner dies, sells the house or moves out for at least 12 months. At that point, you or your heirs will have to pay back the loan plus accrued interest and fees (usually by selling the home), but you will never owe more than the value of your home.
It’s also important to understand that with a reverse mortgage, you, not the bank, own the house, so you’re still required to pay your property taxes, homeowners’ insurance and upkeep. Not paying them can result in foreclosure.
To be eligible, you must be 62 years of age or older, have at least 50 percent equity in your home, and currently be living there.
You will also need to undergo a financial assessment to determine whether you can afford to continue paying your property taxes and insurance. Depending on your financial situation, you may be required to put part of your loan into an escrow account to pay future bills. If the financial assessment finds that you cannot pay your insurance and taxes and have enough cash left to live on, you’ll be denied.
Loan Details
More than 90 percent of all reverse mortgages offered are Home Equity Conversion Mortgages (HECM), which are FHA insured and offered through private mortgage lenders and banks. HECM’s have home value limits that vary by county but cannot exceed $1,209,750 in 2025.
How much you can actually get through a reverse mortgage depends on your age (the older you are the more you can get), your home’s value and the prevailing interest rates. Generally, most people can borrow somewhere between 40 and 60 percent of the home’s value. To estimate how much you can borrow, use the reverse mortgage calculator at ReverseMortgage.org.
To receive your money, you can opt for a lump sum, a line of credit, regular monthly checks or a combination of these.
But be aware the reverse mortgages aren’t cheap. You’ll have to pay an origination fee, which is the greater of $2,500 or 2 percent of the first $200,000 of your home’s value plus 1 percent of the amount over $200,000. HECM origination fees are capped at $6,000.
You’ll also be charged an initial mortgage insurance premium, which is 2 percent of the loan amount, along with closing costs that will likely run several thousand dollars. Any amount you borrow, including these fees and insurance, accrues interest, which means your debt grows over time.
To learn more, see the National Council on Aging’s online booklet “Use Your Home to Stay at Home” at NCOA.org/article/use-your-home-to-stay-at-home.
Also be aware that because reverse mortgages are complex loans, all borrowers are required to get counseling through a HUD approved independent counseling agency before taking one out. Most agencies charge between $125 and $200. To locate one near you, visit Go.usa.gov/v2H, or call 800-569-4287.
Other Options
If a reverse mortgage doesn’t suit you, you could also tap your home equity by getting a regular home equity loan or line of credit. This type of borrowing requires you to make payments, and lenders can freeze or lower limits on lines of credit, but the borrowing costs are much lower. Or you could also sell your home and move somewhere cheaper.
When to Worry About Your Memory
Dear Savvy Senior,
At age 70, I’ve become more and more forgetful lately and am concerned it may be an early sign of dementia. Are there any memory screening tools or services that you can recommend to help me gage my problem, without going to a neurologist?
- Forgetful Frank
Dear Frank,
Many older adults, like yourself, worry about memory lapses as they get older fearing it may be the first signs of Alzheimer’s disease or some other type of dementia. To get some insight on the seriousness of your problem, here are some tips and resources you can turn to.
Warning Signs
As we grow older, some memory difficulties – such as forgetting names or misplacing items from time to time – are associated with normal aging. But the symptoms of dementia are much more than simple memory lapses.
While symptoms can vary greatly, people with dementia may have problems with short-term memory, keeping track of a purse or wallet, paying bills, planning and preparing meals, remembering appointments or traveling out of the neighborhood.
To help you recognize the difference between typical age-related memory loss and a more serious problem, the Alzheimer’s Association provides a list of 10 warning signs that you can assess at 10signs.org.
They also provide information including the signs and symptoms on other conditions that can cause dementia like vascular dementia, Lewy body dementia, frontotemporal dementia, Parkinson’s disease, Huntington’s disease, chronic traumatic encephalopathy and others – see ALZ.org/dementia.
Memory Screening
A great resource and first step to help you get a handle on your memory problem is the Alzheimer’s Foundation of America, which offers a National Memory Screening Program. This is a free, confidential, face-to-face memory screening done virtually in real-time that takes about 10 to 15 minutes to complete and consists of questions and/or tasks to evaluate your memory status. Once the screening is complete, the screener will review the results with you.
Available to everyone, these memory screenings are done daily Monday through Friday, and are given by doctors, nurse practitioners, psychologists, social workers or other healthcare professionals across the country.
A smart phone, computer, tablet or any other device with a webcam and Internet capability is all that’s needed. Appointments can be requested online at ALZFDN.org/memory-screening or by calling 866-232-8484.
It’s also important to know that this screening is not a diagnosis of any particular condition but can indicate whether you should see your doctor for more extensive assessment.
See Your Doctor
If you find that you need further evaluation, make an appointment with your primary care doctor for a cognitive checkup and medical examination. Depending on what’s found, you may be referred to a geriatrician or neurologist who specializes in diagnosing and treating memory loss or Alzheimer’s disease.
Keep in mind that even if you are experiencing some memory problems, it doesn’t necessarily mean you have dementia. Many memory problems are brought on by other factors like stress, depression, thyroid disease, side effects of medications, sleep disorders, vitamin deficiencies and other medical conditions. And by treating these conditions he can reduce or eliminate the problem.
How to Replace Important Lost Documents
Dear Savvy Senior,
How do I go about replacing some important documents that were lost when our home of 50 years burned down? We lost everything including our house deed, car titles, old tax returns, Social Security and Medicare cards, birth certificates, marriage license and passports.
- Suffering in SoCal
Dear Suffering,
I’m very sorry to hear about the loss of your home, but you’ll be pleased to know that replacing most of the lost documents you mentioned is pretty easy once you know where to turn. Here are the resources to help you get started.
Birth certificates: If you were born in the United States, contact the vital records office in the state where you were born (see CDC.gov/nchs/w2w/index.htm for contact information). This office will give you specific instructions on what you need to do to order a certified copy and what it will cost you – usually between $10 and $30.
Car titles: Most states offer replacements through a local department of motor vehicles office. You’ll need to complete a replacement title application form and pay the application fee, which varies by state. You’ll also need to show ID and proof that you own the car, such as your vehicle registration or your license-plate number and VIN (vehicle identification number).
Property deed: To access your house deed, contact your county clerk’s office, where deeds are usually recorded. You may be charged a small fee to get a copy.
Marriage certificate: Contact the vital records office of the state you were married in to order a copy (see CDC.gov/nchs/w2w/index.htm). You’ll need to provide full names for you and your spouse, the date of your wedding, and the city or town where the wedding was performed. Fees range from $10 to $30.
Social Security cards: In most states, you can request a replacement Social Security card online for free at SSA.gov/myaccount. When you get there, click on “Replace your Social Security Card” and answer a few questions to verify your identity.
Medicare cards: If you’re enrolled in original Medicare, you can replace a lost or damaged Medicare card by calling Medicare at 800-633-4227, or by logging into your MyMedicare.gov account, where you can print or request a new card to be mailed to you for free. If you’re enrolled in a Medicare Advantage Plan, such as an HMO, PPO, or PDP, you’ll need to call your plan to get your card replaced. And, if you get Railroad Retirement Board benefits, you can get a replacement card by calling 877-772-5772.
Tax returns: To get copies of old tax returns start with your tax preparer, who usually keeps copies of your returns on file. You can also get copies of federal returns directly from the Internal Revenue Service. You’ll need to fill out and mail in IRS form 4506. To download this form IRS.gov/pub/irs-pdf/f4506.pdf or call 800-829-3676 and ask them to mail you a copy. The cost is $30 for each return requested.
And to get copies of your state tax returns, contact your state’s department of revenue who will also require a request form. See TaxAdmin.org/fta-members for state contact information.
Passports: If your U.S. passports were valid, you’ll need to first report them as lost or stolen so they can be canceled. You can do this online at PPTform.state.gov or in person when you apply for a new passport at a Passport Application Acceptance Facility, which are located in many U.S. post offices. See iafdb.travel.state.gov to locate one near you. You’ll also need to submit Form DS-64 and Form DS-11. The replacement fee is $130 per passport.
Are You at Risk for Kidney Disease?
Dear Savvy Senior,
What are the risk factors for kidney disease? My mother died from kidney failure a few years ago at age 75 but didn’t even know she had a problem until it was too late.
- Inquiring Daughter
Dear Inquiring,
Anyone who has diabetes, high blood pressure, heart problems or has a family history of the disease is at increased risk for chronic kidney disease, a condition in which the kidneys can no longer effectively filter your blood.
According to the Center for Disease Control and Prevention, around 37 million U.S adults have chronic kidney disease, and millions more are at risk of developing it, yet most people don’t realize it.
That’s because kidney disease develops very slowly over many years before any symptoms arise. But left untreated, the disease can eventually require people to spend hours hooked up to a dialysis machine or get a kidney transplant. Even mild kidney problems can double a person’s risk of heart attack and stroke, as well as cause anemia and bone disease.
The reason kidney disease has become so widespread today is because of the rise of obesity, type-2 diabetes and high blood pressure which all strain the kidneys.
Another factor is the increasing number of people who take multiple medications, which can overtax the organs. People over age 60 are especially vulnerable both because they tend to take more drugs, and because kidney function normally declines somewhat with age.
Get Screened
Because kidney disease is often symptomless, it’s usually undiagnosed. The only way to catch it before it advances is to have a routine blood and urine test by your doctor. So, anyone that has diabetes, high blood pressure or heart disease, or is age 60 or older needs to be tested annually.
If your lab tests show a decline in kidney function for more than three months in a row, you might be diagnosed with kidney disease and referred to a nephrologist. You also need to know that while kidney damage cannot be reversed, there are a number of effective lifestyle steps and treatments that can help contain the damage, including:
Control your blood pressure: If you have high blood pressure, get it under 130/80. If you need medication to do it, ACE inhibitors and ARBs are good choices because of their proven ability to protect the kidneys.
Control your diabetes: If you have diabetes, keep your blood sugar as close to normal as possible. Diabetes medications called SGLT-2 inhibitors have also shown to be effective in helping slow the progression of kidney disease, even in non-diabetic patients.
Adjust your diet: This usually means reducing the amount of protein and phosphorus you eat and cutting back on sodium, sugar and possibly potassium. Your doctor can help you determine an appropriate eating plan, or you may want to talk to a dietitian.
Watch your meds: Dozens of commonly used drugs can damage the kidneys, especially when taken in high doses over long periods – most notably NSAIDs like ibuprofen and naproxen. Proton pump inhibitor (PPI) medications taken for heartburn and GERDS, and herbal supplements can also be problematic. Talk to your doctor about all the prescription, over the counter and herbal products you take to identify potential problems and find alternatives.
Exercise and lose weight: If you’re overweight and inactive, start an aerobic fitness routine (walk, swim, cycle, etc.) that gets your heart pumping. This will help lower blood pressure, control diabetes and help you lose excess weight all of which will help your kidneys.
Stay hydrated: Dehydration can affect kidney function, so try to drink at least six to eight 8-ounce glasses of water per day.
Quit smoking: If you smoke, quit. Smoking damages the kidneys and doubles the rate of progression to end-stage renal failure.
Send your senior questions to: Savvy Senior, P.O. Box 5443, Norman, OK 73070, or visit SavvySenior.org. Jim Miller is a contributor to the NBC Today show and author of “The Savvy Senior” book.
