| Through a reverse mortgage senior citizens are able | | | | program gives you the ability to receive income today, |
| to free up the equity they have built up in their home. | | | | and in return EquityKey has the right to participate in |
| But there are certain features about a reverse | | | | the future appreciation of the home. The current equity |
| mortgage that do not make them the best option for | | | | is retained by the owner. The money received from |
| everyone. As a borrower you may wish to seek an | | | | EquityKey is based on the current value of the home. |
| alternative to a reverse mortgage. There are a few | | | | The money paid to the owner does not accrue |
| other options that will allow you to have extra income | | | | interest or have to be repaid as long as the lender's |
| from the equity of your home. Here is an explanation | | | | agreement is followed, unlike that of a reverse |
| of some of the available alternatives to a reverse | | | | mortgage or a traditional loan. |
| mortgage. | | | | *REX Agreement-this type of financing is an |
| *Family Advantage-Family Advantage is a line of credit | | | | agreement and not a mortgage. It is not a loan either. |
| funded by relatives or friends of a homeowner and | | | | This is a purchase option that is a real estate |
| secured by real estate. Family Advantage is a less | | | | investment agreement. It enables you to convert a |
| expensive option to the reverse mortgage for most | | | | portion of your homes equity into cash. In exchange, |
| home owners. This type of financing does not require | | | | the agreement gives REX & Co. the option to |
| mortgage insurance, origination fees, closing costs or | | | | share in a specified percentage of the future increase |
| set asides. The costs of setting up a Family | | | | or decrease in the home's value. They share in a loss |
| Advantage loan are 1/3 the cost of a traditional | | | | or gain in the value of the home. |
| reverse mortgage. The biggest benefit to a Family | | | | Reverse mortgages are a good option for most |
| Advantage loan is the home will remain in the family. | | | | seniors of at least 62 years of age, but they are not |
| There is no age requirement for this type of loan and | | | | for everybody. While a reverse mortgage may not be |
| any home can be used, not just a primary residence. | | | | in your best interest, there is an alternative to reverse |
| *EquityKey Program-this is an alternative that available | | | | mortgages that can also give you the financial security |
| for individuals 65-85 that is debt-free. EquityKey is an | | | | you may need. You just have to find out which |
| alternative method of financing that does not risk the | | | | financial vehicle will work best for you. |
| equity that the owner has built up in the home. This | | | | |