Home equity is the actual value you have in your home. It is the difference between the market value of your home, and any debt, such as a mortgage, that you owe on your home. For example, if your home is worth $500,000, and you have a mortgage of $100,000, your equity is $400,000. This is the amount that you actually are entitled to when all is said in done and lenders are considered.
The great thing about home ownership is, that as house prices increase, so too does your equity. Although traditionally you can’t access this equity until you sell your home, Senior Home Owners can using a Reverse Mortgage. Senior homeowners in Canada can benefit from the equity in their home by getting safe and secure access through the CHIP Reverse Mortgage. The exact amount available will depend on the age of the homeowner and his/her spouse, the type of home, its location and its current market value, and any secured debts.
Put your home equity to work with a reverse mortgage
With a reverse mortgage, you can choose to take a lump sum of money or to receive funds over time. As long as the property is well maintained, and property taxes and property insurance is paid, the homeowners will continue to own their home and HomEquity Bank will never take possession.
No regular payments are required; the loan does not become due until the home is sold or both homeowners move out. Interest is added on to the original amount borrowed. When the amount is repaid, all remaining equity in the home belongs to the homeowners (or their estate).
The equity in your home can be accessed safely and securely for necessities such as:
Paying off debts
To fund a college education for your children or grandchildren.
Make home improvements that will increase the value of your property, or make it more accessible and comfortable.
Cover unexpected medical bills or other expenses.
Pay for a hobby or travel.
Find out how you can get a Reverse Mortgage working for you. Contact us today!
Original Article: https://www.reversemortgagepros.ca/home-equity/