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I don't believe these stop at the value of your home. It's as long as you're alive. For most people that means they'll get less than the value of their home but
by fredophile 5y ago
I don't believe these stop at the value of your home. It's as long as you're alive. For most people that means they'll get less than the value of their home but I've heard of one case where a person ended up living for a long time and the financial instrument being sold multiple times as a result. It's like insurance, on average the insurance company makes money but they can lose a lot of it on some individuals.
- nly 5y agoThe property value presumably increases as well though, so there's potential the buyer will come out ahead with the annuity payments even if they pay more nominally than current value
- fredophile 5y agoWhy does the property value increase? Property values can and do decrease or move sideways for long periods of time. The property value and the payments are completely independent.