CHIP reverse mortgage
- Thread starter spankingman
- Start date
You're much better off getting a line of credit secured on your house. Sure, you got to make payments but at today's interest rates, the interest wouldn't be a hardship. My mother-in-law did the chip thing to get cash to do some upgrades but when she died my wife had a lot less coming to her. Chip charged a higher rate than the bank LOC. they don't do it for charity, I grit my teeth every time their ad comes on TV.
CHIP mortgages is nothing like HELOC. difference with chip is the zero monthly payment obligation. It can work for someone with sound estate planning, otherwise steer away from this.
And the way it's structured, you can renew this loan without paying a single cent to that loan, until death whereby life insurance can be used to pay this loan or selling of the person's estate. But a great way to get money from your home and not pay anything. Some people use this if they cannot qualify to HELOC, qualifying to CHIP is way more easier
And the way it's structured, you can renew this loan without paying a single cent to that loan, until death whereby life insurance can be used to pay this loan or selling of the person's estate. But a great way to get money from your home and not pay anything. Some people use this if they cannot qualify to HELOC, qualifying to CHIP is way more easier
Just realized spellcheck messed with me. I meant viatical settlement..God, this reminds me of life settlement and via rivals..
Always go for a HELOC
A CHIP is a very good choice in some situations but not in others... like every other financing option available.
The issue is not to always "avoid CHIP at all costs" but to determine whether or not it is an intelligent solution for the specific situation: some times it is, sometimes it isn't.
Perry
The issue is not to always "avoid CHIP at all costs" but to determine whether or not it is an intelligent solution for the specific situation: some times it is, sometimes it isn't.
Perry
Qualifying for CHIP is easier than a heloc. Don't need to qualify with employment or adequate credit score.
Whereas heloc, you have to have credit and some case be working. So if you are in trouble and cannot make your Mortgage payment, but you've lived in your house for a loooong ass time, you've been receiving disability insurance for sometime and made a few miss payment here and there -- you can save your home from bankruptcy by taking CHIP
The solutions is endless with this bank!
Here is another: A man bought a condo with help from his grandma. He's in his thirties and landed a nice job, with company car, good pay. All of sudden, he is out of work due to his company bought by larger and they decided to restructure the company to save money. He got a nice 6-month package, qualify for EI, maybe work pt till he finds his next job. In today's market, it's tough. If one year from now, he cannot find work of similar income to support his Mortgage, he could sell the condo OR ask his grandma for help. CHIP is designed for elderly, or those who's income cannot support current Mortgage. Their family lawyer will draft a gifted sale from him to his grandma, and get a CHIP Mortgage to pay off the previous Mortgage and stop making monthly payment. Course she is required to live at that address, but it's your grandma! She can change her mailing address continue to live in her current apartment. It'll just be a little secret and banks don't have to know. But this will buy more time he needs to get back on his feet
Whereas heloc, you have to have credit and some case be working. So if you are in trouble and cannot make your Mortgage payment, but you've lived in your house for a loooong ass time, you've been receiving disability insurance for sometime and made a few miss payment here and there -- you can save your home from bankruptcy by taking CHIP
The solutions is endless with this bank!
Here is another: A man bought a condo with help from his grandma. He's in his thirties and landed a nice job, with company car, good pay. All of sudden, he is out of work due to his company bought by larger and they decided to restructure the company to save money. He got a nice 6-month package, qualify for EI, maybe work pt till he finds his next job. In today's market, it's tough. If one year from now, he cannot find work of similar income to support his Mortgage, he could sell the condo OR ask his grandma for help. CHIP is designed for elderly, or those who's income cannot support current Mortgage. Their family lawyer will draft a gifted sale from him to his grandma, and get a CHIP Mortgage to pay off the previous Mortgage and stop making monthly payment. Course she is required to live at that address, but it's your grandma! She can change her mailing address continue to live in her current apartment. It'll just be a little secret and banks don't have to know. But this will buy more time he needs to get back on his feet
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