Frequently Asked Questions

Author: Marisa Nguyen |

What if I have an existing mortgage?

You can use the CHIP Reverse Mortgage to pay off your existing mortgage and free up cash flow for the things that matter to you.

What makes the CHIP Reverse Mortgage different from a Home Equity Line of Credit?

HELOCs are a good short-term borrowing option for people who can pay the interest and loan in the near future. However, HELOCs are callable loans and there exists significant risk of non-renewal or cancellation.

Will I ever owe more than my house is worth?

You keep all the equity remaining in your home. In our many years of experience, over 99% of homeowners have money left over when their loan is repaid. The equity remaining depends on the amount borrowed, the value of the home, and the amount of time that’s passed since the reverse mortgage was taken out.

What fees am I responsible for?

There are one-time fees to arrange a reverse mortgage. Appraisal fees, a fee for independent legal advice, as well as our fee for administration, title insurance, and registration. Many of these fees are common with a conventional mortgage. With the exception of the appraisal fee, all fees are paid for with the funding dollars.

Should I consider this a loan of last resort?

No. Many financial professionals recommend a reverse mortgage to homeowners 55 and over who prefer to stay in their own home, want to eliminate their monthly mortgage payments, and supplement their monthly income with tax-free funds.