Is EquityChoice Right for me?
Let’s explore the possibility of EquityChoice
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.
Current Home Price Value: $1,000,000
Current Mortgage: $200k
Current Rate: 3.5%
Current LTV: 20%
Current Equity: $800K
EquityChoice Loan: $100k
Current Rate: 4%
Combined LTV: 30%
Current Equity: $700k
EquityChoice vs. Traditional Home Loans
Compared with traditional home loans that require monthly payments, EquityChoice gives homeowners a unique advantage – increased cash flow every month that they can save or reinvest to potentially earn additional income over the term of their loan.
For example, if a homeowner took out a loan of $100,000 for 10, 15, or 20 years using a traditional home equity loan at a 10% APR rate, they would have monthly payments of $965 for 20 years, $1,075 for 15 years or $1,322 for 10 years.
Since payments are not required with EquityChoice, homeowners have extra cash flow each month that they could use to invest and turn time into an economic advantage.