Unwise Advice On Your Home Loan and Medical Bills
Recently I was at my local bank, which I've had an account with for a decade and a half. Being the friendly person I am, I have gotten to know several of the long time tellers. As I was doing my business with one, a nice older woman, she asked me what I had been doing lately? I work third shift now and don't get in that often.
I mentioned that I was planning to build a small office and workshop on my sister's property over the next few years. She asked me if I was considering getting a loan/second morgage to pay for it.
I told her I was planning the exact opposite, that is paying for the construction out of pocket and just before retiring, pay the entire balance of my sister's morgage off, so we would be debt free.
Her reply has been bothing me ever since we talked.
BTW, I've noticed at this main stream bank, and at the credit union that I save at, there has been a push to turn tellers into sales people. Gone are the loan officers and bank people at desks except for the bank manager in her office. Instead if you want help you are funneled to a teller. I'm sure this is to cut costs but I wonder how much training the banks are giving them.
Anyway, what she said was that being debt free on a house was wrong because should we get a large medical bill then the government aka Medicaid (or Medicare, I'm just now learning the difference in programs) would force us to sell the home and major assest, essentially becoming poor, before they would help pay the bills.
I had heard of this but not that just because we had a loan on the home it would stop the government from doing that.
I didn't have time to argue with her over this or to get that much more info BUT her advice seems wrong.
I could see that if I had no equity in the home, it would be considered an access but I would also be saddled with a large loan payment each month, on I would still be forced to pay if I had a large medical debt come up.
I just turned 60 and I'm just beginning to learn the ins and outs for the government assistance available. Anyone who is older and has had some experience know wheter this was poor advice?