Re:Mortgages are a manufactured product
by throw0101a on Saturday January 15, 2022 @10:32AM
(#29947078)
> How's the price of house even mattered all their life?
Be thankful that it didn't. But if they have full ownership, if all their other retirement savings went away, the equity of the home could be leveraged for living expenses:
> This is an “if all else fails” enhancement that Vettese (and I) hope will not prove necessary. For many Canadians with substantial home equity, it’s nice to know that in a worst-case scenario, your home equity can be tapped. But, Vettese warns, “it should only be used to provide necessary income, not to enhance one’s lifestyle.” He also says it should not be considered until age 75. He notes that a reverse mortgage typically involves about 180 basis points higher than a HELOC would charge.
If someone lives long enough that they are no longer able to take care of themselves, and it is not possible for them to live with family, then the equity could be used for paying for an assisted long-term elderly care facility.
Be thankful that it didn't. But if they have full ownership, if all their other retirement savings went away, the equity of the home could be leveraged for living expenses:
> This is an “if all else fails” enhancement that Vettese (and I) hope will not prove necessary. For many Canadians with substantial home equity, it’s nice to know that in a worst-case scenario, your home equity can be tapped. But, Vettese warns, “it should only be used to provide necessary income, not to enhance one’s lifestyle.” He also says it should not be considered until age 75. He notes that a reverse mortgage typically involves about 180 basis points higher than a HELOC would charge.
* https://findependencehub.com/retired-money-boost-retirement-...
If someone lives long enough that they are no longer able to take care of themselves, and it is not possible for them to live with family, then the equity could be used for paying for an assisted long-term elderly care facility.