How It Works
We believe you deserve a smarter, safer way to access home equity wealth. That’s why we created EquityChoice.
What is EquityChoice and How Does it Work?
EquityChoice is a new type of residential second mortgage (called a Shared Appreciation Mortgage) that is designed to give homeowners access to a portion of their home equity wealth with more flexible terms than traditional home loans and lower costs and more safeguards than non-regulated equity investment financing options.
- the initial amount borrowed
- interest that compounds monthly at a “below market” fixed rate
- a share of your home’s future appreciation
The EquityChoice Advantage
Safeguards
- limit how much you can owe no matter how much or fast your home appreciates
- abide by standard loan terms and lender obligations that are regulated by state and federal authorities
- require the loan to be originated by an approved, active NMLS licensed loan officer
- create transparency with loan processing and servicing which follows standard mortgage industry practices
- offer flexibility with the amount you choose to borrow
Proceeds
The choice is entirely up to you; however, we do suggest thinking of long-term strategies that can assist in diversifying your investments, building wealth with the time advantage of immediate funds available, and increasing monthly cash flow. Common use cases include:
- buying a second home or rental property
- reinvesting in assets with high-yield potential (consult tax advisor)
- adding monthly cash flow
- making “value added” home improvements or renovating to “age in place”
- starting or funding an existing business
- investing in or paying off educational expenses
- funding long-term expenses and/or retirement needs
End of Term
When the loan matures, you have various options for paying back the outstanding loan balance such as:
- using funds from savings, income from real estate properties, or other investment account
- refinancing with a traditional mortgage or home equity loan
- using part of the proceeds from selling the home
Get Started Today
EquityChoice
How It Works
© Copyright 2016-2022 Nexera Holding LLC dba Newfi Lending | All Rights Reserved | NMLS ID 1231327 | Equal Housing Opportunity | 2100 Powell St Suite 730, Emeryville, CA 94608
*See terms and conditions that apply to any Shared Appreciation amounts you may owe on the Newfi EquityChoice Loan at Newfi.com/Equitychoice.
With EquityChoice, the fixed interest rate will accrue on a monthly basis and negatively amortize, which will result in an increase to your principal balance.
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