Should I turn my home equity into monthly income?
(NC) When retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good fit for you, consider if you agree with the following statements:
• Staying in my home is critical to the quality of my retirement lifestyle.
• The idea of renting instead of owning a home bothers me.
• My income consistently falls short of ongoing expenses.
• I expect my retirement savings to run out within the next few years.
• I am comfortable with using the value of my house to fund retirement.
If you answered mostly 'yes', take a look at a few more details about a reverse mortgage called the CHIP Home Income Plan from HomEquity Bank:
• If you have reached age 55, you may be eligible for CHIP. It lets you convert up to 50 per cent of the equity in your home into tax-free cash.
• Unlike other loans on the market, there are no credit or income qualifications and you are not required to service the interest, or repay the principal until you choose to move or sell.
• It is also guaranteed that you will never have to repay more than the fair market value of the house at the time of the sale.
When polled by the Brondesbury Group this year, 78 per cent of CHIP customers said they would recommend a reverse mortgage to others as a cash-flow solution. Financial advisors and mortgage brokers have details and more information is also available online at www.chip.ca.
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