Introducing Equity Select — a new way for homeowners to tap into their equity with tiny monthly payments.

For our clients that have ample home equity and can qualify for a better product than a Private Money loan, but prefer to have super low monthly payments instead of those they would have on a regular loan, there is a new loan product out called “Equity Select.”    It combines similar attributes of a Reverse Mortgage and a HELOC, but is easier to qualify for than a HELOC, and the minimum monthly payments are much smaller.

Wanted to make you aware of a great new loan program for anyone seeking to draw on the equity in their home, but only either can’t afford the typical monthly payment that comes with a regular real estate loan, or does not want that full payment.   THIS PROGRAM IS FOR OWNER OCCUPANTS ONLY.   This new loan program is a great alternative to a Reverse Mortgage, but unlike the age requirements that come with Reverse Mortgages, this new program does not have any age requirements, other than you need to be at least 18 years of age to qualify for one.   There is a monthly mortgage payment requirement on this new mortgage, but it is very small and extremely affordable.   This new loan is a 40 year loan with no prepayment penalty.  As an example, a $500,000 loan (and taking the maximum initial draw of $450,000, you would only have a MINIMUM monthly payment obligation of as little as $378 and at most $1,890, vs. a $2,770.73 monthly principal and interest payment on a regular 30 year fixed rate mortgage, or an interest only payment of $2,718 on a Home Equity Line of Credit.   As you can see, this new loan program can solve a lot of problems for certain homeowners, who want or need a small monthly payment, but prefer not to take a Reverse Mortgage at this time.

This new loan product is much easier to qualify for than a regular mortgage and enables the borrower access to more of their home equity than a Reverse Mortgage.   The equity can be drawn whenever the borrower wants it and can be used for whatever purpose the borrower has.  Interest is only charged on monies actually drawn on this loan.   Because there is a small monthly payment due on this loan product, the possible loan size is higher than a borrower can obtain on a Reverse Mortgage.   In addition, there is no mortgage insurance, like there can be on a Reverse Mortgage.    That keeps the costs down of getting this loan.

This loan is set up as a line of credit, whereby you have to draw at least 50% of the loan amount requested at closing, and then you will have access to the balance of the loan amount over the next 7 years if you ever want to draw it.    You are only charged interest on what you draw and when you draw it.

ANYONE CONSIDERING A REVERSE MORTGAGE SHOULD LOOK AT THIS LOAN PRODUCT FIRST.   ALSO, ANYONE THAT WANTS TO TAP INTO THEIR EQUITY AND HAVE A SUPER LOW MONTHLY PAYMENT OBLIGATION SHOULD ALSO LOOK INTO THIS NEW LENDING OPTION.

We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.