As jumbo reverse mortgages continue to become harder to find and less competitive, taking a look at reverse mortgage alternatives like Equity Key and the REX agreement might be a better solution for some people. Both products offer a broker advisor type of program if you have a clients that are interested in learning more about them too.
Both companies have received a good amount of press in the past couple of weeks so I wouldn’t be surprised if you receive a couple questions from borrowers about the programs. Most recently REX & Co. announced their product is now available in New Jersey, New York, Pennsylvania and Virginia. With the addition of these four states, the REX agreement is available in 13 states.
The REX Agreement allows homeowners to access their equity without ever incurring debt, interest, or monthly payments. Homeowners have the ability to convert a portion of their home’s value into cash now in exchange for granting REX & Co. a portion of the future increase or decrease in the home’s value when they sell or decide to end the Agreement.
"Responsible homeowners have worked hard to build equity in their homes. Through no fault of their own, an increasing number of homeowners have suddenly discovered their HELOCs frozen and access to cash from their home equity denied," said Tjarko Leifer, managing director at REX & Co. "The REX Agreement is a debt-free alternative that can replace the frozen HELOC and give homeowners a large, lump-sum cash advance to use anyway they wish without having to pay interest or make monthly payments."
If you have a client that is interested in the program check out a recent story from Marketwatch that goes over the agreement in more detail here. You can also check out REX’s website at the link below.Print Article