Future Appreciation Matters

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 What Happens If Your Home Appreciates Substantially?

When comparing ways to access home equity without a required monthly mortgage payment, future appreciation matters.

A Home Equity Investment (HEI) isn't a traditional interest-bearing loan. The amount eventually due is tied to the home's future value or change in value according to the agreement.

If the home appreciates substantially, the HEI company's share could become considerably more valuable.

A reverse second mortgage works differently.

It is a loan. Interest accrues on the outstanding balance, but the lender doesn't directly participate in the home's appreciation through an appreciation-sharing formula.

That means substantial future appreciation could change which option ultimately proves more favorable.

Of course, there's one rather large problem:

Nobody knows exactly what your home will be worth 5, 10 or 15 years from now.

That's why the right question isn't simply:

“How much can I get today?”

It's also:

“What could this cost me tomorrow?”

Want more details? Click Here

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

Advertising Disclosure: For educational purposes only. Home values may increase or decrease, and future appreciation is not guaranteed. HEI settlement provisions vary by agreement. Reverse second mortgages accrue interest. Programs, costs, eligibility requirements and availability are subject to change.

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