More and more calls are coming in to me from clients about the options they have with a CHIP Reverse Mortgage. I enjoy talking with each and every one of you as you each bring a bit of a different scenario to the table. (And if you haven’t called me yet, pick up the phone any time and dial (866) 233-1794, to learn more about what a Reverse Mortgage is.
The CHIP Reverse Mortgage is one of the simplest concepts in the world:
As a senior, you’re allowed to receive new funds based on the equity of your home. The calculation for the percentage of equity you receive is based on a few factors, namely your age, and your home’s appraised value.
Your credit rating is never a consideration for the awarding of the Reverse Mortgage, and existing debt is not an issue at all either as we do not do a credit check for this application. (For more details on existing debt, see my blog entry: Can you apply with existing mortgage debt?
Here’s where most people are confused about Reverse Mortgages:
The CHIP Reverse Mortgage is a non-recourse loan, meaning that the lender can only be repaid on the loan from the proceeds of the sale of the property either when you decide to sell your home or your estate sells the property. Your Reverse Mortgage is not a “loan” that can be “called” at the lender’s whim. This fact, alone, provides so much security and relief to my clients!
Either you, yourself, make the decision to sell, or the home will be sold through your estate to pay off the Reverse Mortgage when you and/or your spouse on title pass away. There is another option too whereby children can pay off the reverse mortgage through their own means to the estate and keep the property without the need to sell it. Reverse mortgages can be paid off at any time – just like a traditional mortgage some penalties may apply so it is best to call and find out if you are looking to repay the mortgage in full.
Further, the CHIP Reverse Mortgage allows for payments to you on a monthly basis but most of my clients choose not to make any payments. The interest rate can be fixed. CHIP offers 1 year, 3 year, and 5 year terms as well as a 6 month term and the rate is set at the time the Reverse Mortgage is drawn up after which time it would reset for the new term at the current rates. Clients can choose a variable rate as well.
Yes, I know – most people calling me think the Reverse Mortgage might be too good to be true!
After working for several years as Canada’s leading Reverse Mortgage Specialist, I can assure you that this a sound and solid option to give our respected clients the lifestyle they deserve. There are no hidden trapdoors or surprises.
Feel free to call me at your earliest convenience, toll-free, at (866) 233-1794 to discuss any questions you might have about CHIP Reverse Mortgage information. As I’ve noted, your call is absolutely free, and you are under no obligation.
I’ll look forward to speaking with you!
@Darlene Vilas, Canada’s leading Reverse Mortgage Specialist, www.ReverseMortgageAdvantage.ca