Downsizing is certainly an option but expenses can really add up with renovations, commissions, legal fees and land transfer taxes. Often you have to move away from the neighborhood you love in order to purchase a home that will leave you with some extra cash for retirement.
Do I keep the equity left in the home?Chad2020-10-06T04:02:47+00:00
YES! In 30 years over 99% of homeowners have money left over after their CHIP Reverse Mortgage is repaid. And on average, the amount left over is more than 50% of the value of the home. This is due to the conservative limit (up to 55%) that is put as the amount available to you; and the fact that most homes continue to increase in value.
How does a reverse mortgage compare to a home equity line of credit?Chad2020-10-06T04:02:23+00:00
A home equity line of credit is a good option for some people. It requires you to make regular payments. Before getting one, you will also have to qualify based on your income and credit history. You may also have to requalify as time goes on.
What if I already have a mortgage?Chad2020-10-06T04:02:06+00:00
No, there are no mortgage payments required until you choose to move or sell your home. You do have the option of making advanced interest payments to reduce the amount owing at the end of your reverse mortgage.
How much money can I get from a chip reverse mortgage?Chad2020-10-06T04:01:10+00:00