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The Equity Key Mortgage Home Loans Programs |
 The Equity Key Mortgage Home Loans Programs - Seniors currently hold over $4.3 trillion in home equity. Sadly, many of them are unable to access this resource without selling their homes or obtaining an expensive reverse mortgage. Today there's a new model for helping seniors tap into their equity that may become a widespread alternative in the not-too-distant future. Until now, if you were over the age of 65, there were few alternatives for using the equity from your home. You could refinance, but you had to qualify, pay points and fees, and make monthly payments.
Now there's a new model called Equity Key available to residents of California, Florida and New York who own property with a cumulative value of at least $500,000 and have at least 30 percent equity in their property. Unlike reverse mortgages that are typically limited to primary residences, Equity Key accepts primary residences, rentals, commercial and second homes.
The Equity Key model is an appreciation-sharing model. In other words, Equity Key pays the property owner a specific amount (approximately 12 percent to 15 percent of the property's value or an annual recurring payment in the approximate amount of 0.9 percent to 2.4 percent of the home's value.) In exchange, Equity Key takes a partial ownership position and splits any future appreciation on a 50-50 basis with the property owner. The owner retains the equity he or she has accumulated.
When the owner passes away, Equity Key sells the property, and the accumulated equity (all the equity the owner had prior to the Equity Key transaction plus 50 percent of what accumulated subsequently) goes to the owner's heirs. The homeowner's estate has the first right of refusal to purchase the property at the current market value.
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