Process
Newfi Equity Choice allows full customization.
How much money can I get?
Generally, you can access funds up to 16% of your home’s appraised value ; and, the maximum combined mortgage liens you have cannot exceed 65% of your home ‘s appraised value. The minimum amount that can be borrowed is $85,000 and the maximum that can be borrowed is capped at $500,000.
The actual amount you can borrow will be based on how much you choose to receive at the time you apply (subject to your appraised home value and financial assessment) – at the time of application you can decide how much or how little you’d like to tap into within that range.
Choosing to receive less money now will result in a lower cost of Shared Appreciation.
(Future Appreciation = (Gross Sale + Value +/- Home Condition Adjustment) – Initial Agreed Value
To determine how much will be owed in shared appreciation, we will take the following:
Home Price Appreciation Amount = Future Appreciation x% Shared Appreciation
How do you determine the future appreciation or change in value of the home?
When you apply for you loan, we use an independent 3rd party appraiser to estimate the value of your home. To account for market volatility and naturally occurring appraisal variance, your Appraised Value will be reduced by 5% to establish your home’s Initial Agreed Value which will be used as the starting point for calculating the future appreciation.
When it’s time to payoff your loan, we will estimate your home’s value by using one of the following sources:
- a sales contract
- an appraisal, performed by an independent third party selected by lender or a comparable alternative if your home has been damaged or destroyed.
To Provide Homeowner Credit for Major Home Improvements
- Notify us at least 60 days prior to payoff/maturity date.
- Home Appraisal is conducted and values property.
- Final Payoff Amount Adjust for Improvements.
Homeowners are responsible for paying closing/settlement costs if they choose to sell their home and use proceeds to payoff EquityChoice balance at maturity.