What Are Equity Share Reverse Mortgages? Read below to understand some of the characteristics of an equity share reverse mortgage!
For many people, planning for retirement can be difficult. Estimating all of the living and medical expenses that you will endure is nearly impossible. For those looking for extra money during retirement, a reverse mortgage could be a great idea. Those who need even more may need to consider an equity share reverse mortgage!
Characteristics
There are some characteristics of equity share reverse mortgages that separate them from regular reverse mortgages. The main difference with the equity share reverse mortgages is that borrowers have the right to get more money out of there loan. The reverse mortgage borrower is able to get more money because the equity share function of the reverse mortgage does not have the same underwriting criteria or a traditional reverse mortgage.
Benefits
There are some benefits of equity share reverse mortgages that are not received in other forms of reverse mortgages. With an equity share reverse mortgage, a borrower will be able to receive more proceeds than they would normally get. This type of reverse mortgage is especially ideal for someone who is younger and does not yet qualify for larger sums of capital through their reverse mortgage.
Negatives
While there are definite benefits of equity share reverse mortgages, there are also a few negatives. The largest negative with equity share reverse mortgage is the amount of fees that are paid. Equity share reverse mortgages already have the same high origination fees as normal reverse mortgage, but also require the borrower to pay a fee when the loan is repaid. This fee can cost thousands of dollars and is calculated based on the amount of money that is outstanding prior to the loan being repaid.
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