Hedge your house alternative to reverse mortgages
February 16th, 2007 | by admin Published in Alternatives, REX | 2 Comments
Real Estate Equity Exchange, Inc. (Rex) has released a product that will give consumers up to 15% of their homes value in exchange for a cut of up to 52.5% of the capital appreciation when the property is sold. The way it’s broken down is Rex gets 3.5% of the gains for every 1% it pays the consumer for the option.
Mr. Hanson from Liberty Reverse Mortgage noted in the article “the biggest downside is the 50% of capital gains for a measly 15% of the house.” I agree with Mr. Hanson but if your are unable to qualify for a reverse mortgage this could be a good option. Rex’s managing director Jeff Cusack notes that, “Rex shares in the downside with the homeowner-something an originator of a reverse mortgage doesn’t do.” The borrower is not required to repay any of the 15% it would receive to enroll in the program which is the overall benefit for the consumer. At the moment this program is being offered in Florida, Illinois, New Jersey, Virginia, and Washington. Below is a link to the full article.
Have a great weekend!
Technorati tags: Reverse Mortgage, Hedge Fund, REX, Equity Finance
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March 7th, 2007 at 7:25 pm (#)
This is a good article with interesting news. We can get more info about todays mortgage rates, mortgage news, mortgage frauds, net branching, home mortgage financing strategies,and much more interesting things from
http://www.mortgagepronews.com
August 20th, 2007 at 7:22 pm (#)
[…] people 65 years and older a way to receive cash for the future appreciation of their homes. REX released a product earlier this year that is a lot like the Equity Key product but there are a few differences between the […]