CHIP Reverse Mortgage Prepayment Calculator
If you pay your reverse mortgage before it is due, a prepayment charge may apply. The prepayment information provided here only applies to the CHIP Reverse Mortgage and CHIP Max products Contract 33 and 34. Please refer to your mortgage documents to see which contract you have. If you have a CHIP Additional Funds product, please refer to the calculations outlined in your disclosure statement or contact us so we can calculate your prepayment charge.Any amount you prepay will be applied to the following items first, in this order: administrative expenses, interest, and principal.
No prepayment charge applies:
- on regular interest payments of a fixed amount by automatic withdrawal
- on a single prepayment up to 10% of the outstanding principal and interest made within 30 days following each anniversary date, and
- Applicable to Contract 33 only, on a prepayment made after the 5th anniversary date and the payment is made within 30 days following a reset date
This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.
