Rex agreement?
This is an appreciation sharing product that can get your client up to
12.5% of their property
value, in cash, without
payments…
Why would you share your
appreciation you ask? Here are a couple examples where a Rex agreement
was the right tool…
Scenario 1
Husband and wife in
Lafayette, CA
Home value = $1,300,000
First Mtg. =
$800,000
HELOC = $125,000
Retail debt = $44,000
Client need: $150,000 to
pay bills, home improvement and help kids.
We were able to get them
$162,500 with a REX Agreement. They cleared all their bills and were able to
move forward with their home improvement project. The home improvements will
fall under our "re-modeling " adjustment.
Scenario 2
Husband and wife in
Santa Barbara, CA
Home Value = $1,800,000
FirstMtg. = $1,494,000 @
5.75%
Retail debt = $60,000
Client need: They wish
to stay in their home another 5-7 years until all of their kids graduate. They
have a high coupon rate which was stretching their budget each month. We
were able to get them a REX Agreement for $225,000. They used $144,000 of the
cash to pay down their mortgage to 75% LTV. They then obtained a new 7/1 ARM
with one of our lending partners at 4.5% as well as clearing all of their
retail debt. The total cash savings was $3,000 per month.
Like a reverse mortgage,
a Rex agreement is not for everyone, but when it is the right tool, it can be a
blessing.
If you have questions on
either of these, let me know!
Scott Larson
Reverse Mortgage
Specialist
(408) 315-2503 direct
(408) 872-4002 fax
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