Mary S. – Improved Monthly Income to combat rising property taxes.
Mary was very concerned about rising property taxes for homes in her neighbourhood.
At age 78, Mary’s monthly income was appx. $2400/month. Living on a fixed income was comfortable until her home was assessed at $550,000, raising her property taxes by $150/month. The rising costs of heating and taxes made it difficult to afford her yearly trip to the U.K. to visit her daughter and grandchildren.
Solution: Mary took a $100,000 CHIP reverse mortgage. She invested the proceeds to generate an extra $500/month income. Because she invested the proceeds, the interest on her reverse mortgage became a tax deduction, making her new income non-taxable. Mary is delighted she can continue to stay in her home and still travel to visit her grandchildren.