Frankly, it doesn't sound that great to me. Great for the bank, maybe. One problem that they don't talk about when they advertise how "great" it is ... What happens after you've used up all your equity (which happens very fast!)? The bank now owns the entire house again, and you can't afford to make payments to live there anymore (assuming the bank would let you)? You've got no house, you're too old to qualify for a mortgage on another house. All there is left is a crappy state nursing home (on public aid), since you can't afford an apartment or a decent senior housing center. Even if you get the federally guaranteed type that lets you live in the house "till you die", if you are in hospital or rehab too long a time, the lender can still take the house, even if you were planning to return to it. Or if the lender decides you are "not properly maintaining" the house, they can take it back. Housing codes are hairy. Few houses will pass, if you look hard enough.