The other day, a gentleman called me with questions about the CHIP Reverse Mortgage option. His first question was a unique one, and it has to do with the myths around reverse mortgages … in fact, I’ll have to add this to my “Top 4 Myths About Reverse Mortgages column!
He was not “cash poor,” and he was not a senior citizen with seriously diminished funds. He and his wife actually felt comfortable in their lifestyle, but had just come up against an unexpected (and surprisingly high) financial expense with BOTH of their cars. He was facing a “sudden debt” issue and was looking for options outside of dipping into reserved retirement funds.
I assured him – as I’ll assure all of you out there – he can “qualify” for a reverse mortgage, which awards funding based on the equity of your home, which will give him access to home equity without impeding his retirement lifestyle.
In his scenario, the CHIP reverse mortgage was the perfect fit. Both he and his wife were active golfers and love to travel. They did not want to give up their retirement plans, by having to make monthly car payments. Instead, they chose to use a small amount of their home equity, with the flexibility of never having to make a payment until they sell or move.
Granted, many seniors over the age of 55 come to me with long-term financial stress issues. Others have applied for and been rejected for riskier credit lines or loans. And some people just want to live more freely with less financial worry by having financial funds readily available. In just about every single case, I’ve been able to help them with a CHIP reverse mortgage.
With a reverse mortgage, you no longer have to make mortgage payments.
When you put a reversible mortgage in place, you no longer are required to make regular mortgage payments to your lender – you can, of course, make payments, but you are not required to do so. You are charged interest only on the proceeds you choose to access and the remaining balance is available to use in the future (as a line of credit).
If you’re 55 or older, the CHIP reverse mortgage is a definite solution you’re going to want to explore. Just call me direct at (866) 223-1794 for a free, no-obligation consultation to discuss your reversible mortgage options or, simply fill out our Online Estimate Request and I’ll send you your no obligation estimate with the CHIP Home Income Plan Guide.
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca