Mission
Helping people explore alternatives so they can make an informed decision.
There is a new way for property owners to access cash, without debt or a reverse mortgage.
It's designed for people 65 to 85.
The investor pays the property owner money today for the sharing of future appreciation. Basically, the property owner is selling an option on their real estate. The family can keep the real estate by buying out the investor at the end of the contract.
The property owner keeps the money whether or not the property goes up in value. The investor takes the risk should the property go lower.
The property owner does not have to pay this money back.
You can view a slide show on this program at:
http://www.vizzvox.com/stories/9Cfl22I7zIKo901fms
It won't be a solution for everyone, but it is a solution for many people.
Equity Key(EK) is not a debt. The money you receive is yours to keep, in exchange for a percentage of the future appreciation of your property. (Of course you have to abide by the terms of your agreement.)
Reverse Mortgages(RM) are debt transactions with interest. Requires repayment.
EK has no closing costs: small application fee ($300), which is refunded if you do not qualify or your transaction funds.
RM closing costs: depending on the size of the loan and value of the house, closing costs could be $10,000 to $15,000, or more.
EK you do not have to live in your property you can move out or rent your home at any time as long as you maintain your ownership interest in the property.*
RM requires that you occupy your home. If you vacate your home for more than 365 days, under most reverse mortgages your loan becomes due.
EK the amount you can receive is based on the appraised value of your home, the percentage of your home’s appreciation offered to EquityKey, the expected term of your agreement and your insurability.
RM how much you can receive is determined by age, current value of the home, and prevailing interest rates. Proceeds must first be used to pay off all existing loans on the home.
EK eligible Properties: Primary residences, Rental, commercial, or investment properties
RM eligible Properties: primary owner-occupied residences only.
EK minimum age requirement: 65 (only one homeowner must qualify)All owners on title must be at least 50 years old.
RM minimum age requirement: 62 (all homeowners must qualify)
EquityKey purchases a life insurance policy on each qualifying homeowner. To qualify, applicants must be approved by a life insurance carrier.
RM no life insurance qualification is required.
EK payment options: lump sum
RM payment options: lump sum, monthly payments, or line of credit.
Do your parents struggle to make ends meet with their retirement income? Many homeowners are taking advantage of reverse mortgages as a means of being able to live more comfortably during their retirement years. A reverse mortgage offers individuals aged 62 or older to tap into the equity in their homes as a means of supplementing their monthly incomes.
Getting a reverse mortgage does not involve selling the home, nor does it require the homeowner to take on a new monthly payment. With a reverse mortgage, instead of the homeowner paying the lender, the lender pays the homeowner. Reverse mortgages can come in very handy for helping with day-to-day living expenses, as well as with unexpected and emergency expenses.
Your parents could receive additional income each month with a reverse mortgage. Some individuals opt to receive their reverse mortgage payments in a lump sum instead of monthly payments, and others choose to set their funds up so they can simply draw against them as needed. A reverse mortgage can help with daily living expenses, or with the unexpected such as medical bills or emergencies such as car or home repairs.
Reverse mortgages are loans available to people 62 years of age or older. These loans are used to release the home equity in the property as one lump sum or multiple payments.
The home owner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves the house and moves out somewhere else.
In a typical mortgage, the owner of the house makes a monthly payment to the lender; after each payment the equity increases within his or her property, and typically after the end of the term for instance if the term is of 30 years then the mortgage is paid in full and the property is released from the lender.
Whereas in reverse mortgages, the homeowner makes no payments and all interest is added to the lien on the property. If the owner receives monthly payments, then the debt on the property increases each month.
I have come across a lot of questions lately regarding reverse mortgages and manufactured/mobile homes. Many people think these types of properties do not qualify. Reverse mortgages can be done on manufactured/mobile homes, but there are some conditions that apply.
Here's some information about what's needed to qualify for a reverse mortgage for these types of properties:
* The home must have been built after 1976
* The home must be permanently attached to a foundation
* The home must be a least a double wide
* an appraisal will be needed
* a structural engineering report must be completed
* The land the property sits on must be owned.
A "reverse" mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. The cash you get from a reverse mortgage can be paid to you in several ways:
* all at once, in a single lump sum of cash
* as a regular monthly cash advance
* as a "credit line" account similar to a credit card.
* as a combination of these payment methods.
No matter how this loan is paid out to you, you typically don't have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older.
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