It’s natural to seek ways to unlock the equity in your home to cover unforeseen expenses, pay down debt or even help fund retirement. For many seniors, a reverse mortgage has been the go-to solution for accessing home equity without the need to sell. However, reverse mortgages come with specific age requirements and other considerations that might not be ideal for everyone. In contrast, Newfi’s EquityChoice Shared Appreciation offers a compelling alternative, with similar benefits and no age restrictions.
What Is EquityChoice?
EquityChoice Shared Appreciation is a financial product that allows homeowners to access a portion of their home’s equity in exchange for a share of the future appreciation of the property with no monthly payments or minimum age requirements.
Key Benefits of EquityChoice
- No Age Restrictions
One of the biggest advantages of EquityChoice is that the borrower isn’t required to be a minimum age. While reverse mortgages are only available to homeowners at least 62 years old (some lenders go down to 55), EquityChoice is available to anyone who owns a home and qualifies for the terms of the loan. This makes it an attractive option for younger homeowners or those who simply want to access home equity before reaching the eligibility age for a reverse mortgage.
- No Monthly Payments
Much like reverse mortgages, EquityChoice doesn’t require you to make monthly payments. Instead of making a monthly mortgage payment the loan balance increases over time as interest accrues, which is also known as negative amortization. This can help homeowners maintain their financial stability and increase their monthly cash flow.
- Flexible Use of Funds
Whether you’re using the funds for retirement, healthcare, home renovations, or simply to consolidate debt, EquityChoice offers flexibility similar to that of a reverse mortgage. You can use the funds however you see fit, without the constraints typically associated with other loan products.
Who Can Benefit from EquityChoice?
While reverse mortgages have been a popular option for older homeowners, EquityChoice may be better suited for those who:
- Are under 62 years old and don’t qualify for a reverse mortgage
- Are looking for a more flexible way to tap into home equity without having to refinance their low interest 1st mortgage
- Want to avoid monthly mortgage payments
- Seek capital to fund a business, pay down debt or invest in one’s future
Is EquityChoice Right for You?
As with any financial decision, it’s essential to weigh the pros and cons before deciding if EquityChoice Shared Appreciation is the right choice for your needs. It offers many of the same benefits as a reverse mortgage; however, it does differ in terms of how the funds are structured and the lack of age restrictions, which can be a huge advantage for younger homeowners or those who want more control over their finances.
If you’re considering ways to tap into your home equity, EquityChoice offers a flexible alternative to a reverse mortgage. Call today at (877) 676-3934 to speak with a licensed loan advisor or email us at EquityChoice@newfi.com. By exploring all your options, you can make a more informed decision that helps you secure the financial future you deserve.