Beyond the Traditional Home Equity Loan

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 Want to Access Your Equity Without Refinancing Your First Mortgage?

If you have a first mortgage with a rate and terms you're happy with, refinancing the entire loan just to access equity may not be appealing.

A traditional HELOC or home equity loan can preserve your first mortgage — but it also typically adds a required monthly payment.

There may be other options.

A Home Equity Investment (HEI) or reverse second mortgage may allow qualified homeowners to access a portion of their equity while:

✓ Keeping their existing first mortgage in place
✓ Avoiding a required monthly principal-and-interest payment on the new equity option
✓ Accessing funds for home improvements, unexpected expenses, financial reserves, helping family and other needs

But these two options work very differently.

With a reverse second, interest accrues and the balance can grow over time.

With an HEI, there is no traditional interest-bearing loan balance. Instead, the eventual settlement is tied to the home's future value according to the agreement.

Neither is automatically better. The important thing is understanding the tradeoffs.

 Rob Clark | Home Loan Consultant
209-227-7745 | 559-476-9279
 rbrtclark53@gmail.com
 robertclarkloans.com

Advertising Disclosure: This information is for educational purposes only and is not a commitment to lend or offer of credit. Programs, terms, costs, eligibility requirements and availability are subject to change. Home Equity Investments are not traditional loans and may reduce future home equity. Reverse second mortgages are loans and accrue interest. All financing is subject to applicable program and property requirements.

NMLS #357788 | Firestone Financial Group NMLS #301522 | CA DRE #01148307 | Equal Housing Lender