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. 

With EquityChoice, you don’t owe monthly payments until the end of the loan term. At that time, you’ll make a single payment which includes:

  • 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

Immediate access to funds that can be utilized now, up to $500,000

A below-market, fixed interest rate, with a shared appreciation feature

No interim or monthly payments required

Tax advantages for homeowners, business owners, and investors (consult tax advisor)

Increase cash flow with the ability to reinvest funds to gain investment income

No prepayment penalties at any time

Unrestricted use of funds for reinvestment or preservation of assets

Safeguards

By design, EquityChoice is a shared appreciation financing alternative that is also a residential mortgage. This significantly differentiates our product from other home equity sharing programs because of safeguards that:

 

  • 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-Form

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© 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.

This website is not approved for use in the state of New York.