What Happens if Your Home Doesn't Appreciate?

---

 What If Your Home's Value Barely Changes for the Next 10 or 15 Years?

It's an interesting question if you're considering accessing your home equity without adding a required monthly mortgage payment.

With a reverse second mortgage, interest accrues on the money borrowed. If you don't make voluntary payments, the balance can continue growing even if your home's value doesn't.

A Home Equity Investment (HEI) works differently.

There isn't a traditional interest-bearing loan balance growing each month. Instead, the eventual settlement is based on the terms of the agreement and the home's future value or change in value.

Does that automatically make an HEI less expensive if your home doesn't appreciate?

No.

The actual outcome depends on the specific HEI agreement and how the settlement is calculated.

But it illustrates an important difference:

With a reverse second, time and deferred interest matter. With an HEI, future home value and the agreement's formula matter.

Before accessing your equity, understand what could determine how much you ultimately give back.

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. Programs, terms, costs, eligibility and availability are subject to change. Home values may increase or decrease. Future appreciation is not guaranteed. Home Equity Investments are not traditional loans and settlement amounts vary by agreement. Reverse second mortgages are loans and accrue interest.

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