If you are a homeowner, 55 or older, and considering selling your home or downsizing, you should know there are other options available. One such option is a CHIP Reverse Mortgage.
What is a reverse mortgage?
A reverse mortgage is a home loan that gives owners access to their home equity and turns it into tax-free money for you to spend as you wish. Instead of selling or downsizing to save money for your future, you can keep the home you love.
How does a reverse mortgage benefit me?
A reverse mortgage allows you to receive up to 55% of the value of your home (depending on your age, type of home and location). The money from a reverse mortgage can supplement monthly income and help you enjoy your retirement or cover expenses, without dipping into your savings. With a reverse mortgage, you can avoid taking out a line of credit. Any outstanding loans will be paid out by the proceeds from your reverse mortgage.
Also, as long as you live in your home, you won’t have any regular mortgage payments. You retain ownership and control of the house and will never be asked to leave or sell (as long as you pay taxes, insurance and maintain the property).
Homeowners can receive the money in three ways:
• As one lump sum in advance
• Some now and some later
• Planned advances over a set period of time
Finally, once the CHIP Reverse Mortgage is repaid, you keep the remaining equity on your home. On average, the amount left over is 50% of its value when sold.
Call one of our mortgage brokers today to find out if a CHIP Reverse Mortgage is right for you.