CHIP Open is a reverse mortgage loan, secured against the value of the home. This product is designed for clients searching for a short-term financing solution, without any prepayment penalties for full payments. Unlike a conventional mortgage, CHIP Open does not require regular monthly mortgage payments and offers your clients the ability convert to a CHIP Reverse Mortgage if they require a longer-term lending solution.
The homeowner is required to keep the property in good condition, up-to-date with property taxes and property insurance. The money received is tax-free and can be used however the homeowner wishes.
CHIP Open can help your clients:
- Obtain the capital to seize a present opportunity
- Pay off debts
- Assist with their bridge financing needs
- Handle unexpected expenses
FEATURES YOUR CLIENTS WILL LOVE
Keep home ownership
Your clients can stay in their home and community. They maintain complete ownership and control of the home for as long as they choose to stay.*
No regular monthly payments required
Your clients are able to repay 100% of their mortgage at any time without incurring prepayment charges. Partial prepayments are not allowed.
Your clients have the option to convert their CHIP Open loan to a CHIP Reverse Mortgage if they decide a longer-term lending solution is better suited for their circumstances.
Your clients can get their finances under control and gain the freedom to set their own plans and priorities.
*Subject to homeowners meeting their mortgage obligations
HomeEquity Bank Prime Rate: 2.45 %
The following is a summary of the current CHIP Open Reverse Mortgage interest rates and terms offered by HomeEquity Bank.
|Term||Interest Rate||Closing Fee1||Annual Percentage Rate (APR)2|
|Variable Open3, 4||6.45%||Greater of $2,995 or 1.25% of Loan Amount||6.86%|
3 EASY STEP PROCESS
Frequently Asked Questions
It is required that your clients are over 55, own the home, and use it as the primary residence, CHIP Open requires no health checks.
- This age requirement applies to both spouses.
CHIP Open lets your clients access up to 55% of the home’s appraised value.
CHIP Open is structured to ensure your clients get the money they need in precisely the way they want it. They can access their money in a single lump-sum or an initial lump-sum with subsequent advances.
Many of our clients use a reverse mortgage to pay off their existing mortgage and debts.
We guarantee that the amount to be repaid will never exceed the fair market value of your client’s home. * Your client’s other assets are completely protected.
- There is a conversion fee of $500
- The client can choose to convert at any time as long as they are in good standing.
No. Your client retains title and maintains ownership of their home. It’s required for the home to be your clients primary residence they must pay taxes on time, have property insurance, and maintain the property in good condition.
* Conditions apply. You must maintain the condition of your property and your taxes and insurances must be up to date. Guarantee excludes administrative fees and interest accumulated after due date. Always consult your accountant or financial advisor.
STILL HAVE QUESTIONS?
CHIP OPEN RESOURCES
Keep your clients up-to-date with these downloadable CHIP Open resources.