EquityChoice could be a viable solution for you if you have:
- lived in your home for at least two years,
- good credit history, a FICO score of 680 or above,
- sufficient equity of at least 50% loan-to-value (LTV),
- an existing low-interest mortgage that you intend to keep in place,
- the desire to maintain your current cash flow without the pressure of additional monthly payments,
- access to reserves or investments that you want to preserve instead of liquidating.
Let’s look at an illustrated example of how EquityChoice could work
You own a home worth $1,000,000 and would like access to $100,000 in immediate funds.
With EquityChoice, you’ll access funds and have no monthly payments for 10 years. At maturity, you’ll owe the principal, fixed interested (4% compound monthly) + Shared Appreciation.
Let’s look at what your equity position would be and how much you would owe at the end of your EquityChoice (excluding what you might still owe on your primary 1st lien) loan depending on various home market conditions using the example numbers provided above.
If your home goes up in value by 2% annually to $1,221,199, you’ll owe $230,443 and will still have $990,756 in home equity remaining.
If your home goes up significantly by 6% annually to $1,819,397, then you’ll owe $405,659 with remaining home equity of $1,409,495.
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