FAQ
Frequently Asked Questionsexplain How a CHIP Reverse Mortgage works?
CHIP Reverse Mortgage is secured by the equity in your home, the same as a traditional mortgage, BUT, no payments are required.
That is the big advantage with the CHIP Reverse Mortgage, you do not have to make any regular mortgage payments for as long as you or your spouse lives in your home.
How do I receive the money?
That is your choice. The CHIP Reverse Mortgage gives you the option of receiving all the money you’re eligible for in one lump sum advance, you can take some now and more later, or you can receive planned advances over a set period of time. When you choose planned advances that is available on the Income Advantage product.
Will you ever lose your home to the bank?
No. The homeowner maintains title and ownership of the home. The bank requires you to live in the home, pay your property taxes on time, retain property insurance, and maintain the property in good condition.
Would some consider a reverse mortgage a loan of last resort?
Absolutely not. Many financial professionals recommend a reverse mortgage as a smart solution to supplement monthly income instead of selling and downsizing. Remember you are living in the single most valuable asset you own which is growing in value each and every year.
What are the requirements?
A CHIP Reverse Mortgage is for for homeowners age 55 and older. This applies to both you and your spouse.
How is the available mortgage amount arrived at?
The maximum available is 55% of the value of your home. This specific amount is calculated by using your your age and that of your spouse, the location and type of home you have, and your home’s current appraised value. I can quickly provide you with an estimate of how much you may be approved for, just get in touch with me.
Will you ever owe more to the bank than the house is worth?
Absolutely not, as you keep all the remaining equity in the home. In all of our experience, over 99% of homeowners have money left over when their loan is paid out. The equity remaining will depend on how much was borrowed, the current value of the home, and the interest that has accumulated since the reverse mortgage was initiated.
What if the homeowner already has an existing mortgage?
A reverse mortgage will pay off your existing mortgage and and can also be utilized to settle other debt.
are there any fees i need to be aware of with a reverse mortgage?
Yes, as with any mortgage, there are one time costs involved with arranging a reverse mortgage. These include an appraisal fee, fee for independent legal advice as well as our set amount which covers administration, title insurance, and registration. With the exception of the appraisal fee, these fees are deducted from the funds advanced.