EquityChoice is a smart alternative to traditional home equity loans or co-investments that allows homeowners access access to cash without a monthly payment, allowing them to pay off debt, make home upgrades, improve their business, and more.

EquityChoice is a subordinate lien that allows customers to keep their primary mortgage terms intact and preserve the equity they’ve already built. We share in the outcome of the home price appreciation that occurs after you close on your EquityChoice loan, not before.

It gives borrowers the choice of receiving cash from their equity at a below market interest rate, while sharing in a portion of the home’s future appreciation as determined by an Index, without having to liquidate portfolio investments, dip into savings, or experience the pressure of adding additional monthly mortgage payments. Like other mortgages, you are still required to pay property taxes, homeowner’s insurance, and maintain the home.

EquityChoice can be a smart alternative to high cost, small business lines of credit or debt factoring options. You may find it to be an attractive alternative to certain limited maturity SBA loans that require a personal guarantee which includes your home equity even though the proceeds fund your business. Plus, since you aren’t required to make any payments until maturity, EquityChoice can be used to significantly increase your monthly cash flow.

EquityChoice provides homeowners immediate access of up to 16% of their current home’s equity in cash – with loans up to $500,000 – in exchange for a fixed interest rate that compounds monthly for the term of the loan, plus a share in the home’s future appreciation. The shared appreciation amount may increase the effective annual percentage rate and overall cost of your loan.

EquityChoice is a variable rate, 2^nd lien mortgage that requires no monthly payments and allows you to keep your low-rate 1^st lien in place. It features:

1. A low 4.5% fixed rate (4.839% APR), plus a share of future home price appreciation proportionate to the amount you borrow
2. Due in single balloon payment in (10) years with the freedom to prepay
3. An Interest Cap based on State and Federal limits that protects you in periods of rapid home price appreciation

The effective rate on EquityChoice varies with home price appreciation but is always subject to the Interest Cap:

• – If homes generally depreciate, your effective rate will be 4.5%.
• – If homes appreciate at 2% annually your effective rate will be 8.68%.
• – If homes appreciate at 4% annually, your effective rate would be 11.56%

It’s simple. We designed EquityChoice by starting with you in mind: the homeowner. Our investment is long-term, on behalf of retirement plans and life insurance policy holders who don’t need or want access to their capital in the interim. We prefer that our money remains invested as long as possible. We offer EquityChoice to allow select customers, who are financially sound and responsible homeowners, access to capital without a fixed payment schedule.

The loan matures and must be repaid when you sell your home, after the specified term, whichever happens first or upon the occurrence of certain other events as defined in your promissory note. When the loan matures, you are required to make a final payment representing the total amount owed under the mortgage.

You can expect to pay an origination fee that is approximately 3% of the loan amount at closing and customary closing costs associated with a mortgage transaction. These costs can be financed into the loan. The out-of-pocket expenses you can expect to pay are for an appraisal and a property inspection, which are third-party fees and not lender costs.

As a shared appreciation residential mortgage, EquityChoice provides homeowners greater safeguards and potentially lower costs than equity sharing agreements. Like all other mortgage products, it is regulated and can only be originated by a licensed loan officer making it more predictable, secure, and controlled to protect all parties involved (the borrower, broker and lender).