As interest has grown in the reverse mortgage industry, different alternatives to the reverse mortgage have cropped up to meet the different needs of different borrowers. One of the most interesting of those has been the REX reverse mortgage.
With this type of loan, the borrower does not have to pay exorbitant fees and interest rates for the loan. Instead, the borrower gives a certain percentage of the future home sale price to the lender. In other words, you would agree to give ten percent of the future value of the home to the lender in exchange for an up front home equity loan now.
What's interesting is that there are now beginning to be alternatives to the REX reverse mortgage. This niche reverse mortgage alternative is popular enough to have spawned similar-but-different types of loans. One of those is the Equity Key Program.
The Equity Key Program is very similar to the REX reverse mortgage. However, there are some differences. The most important difference is that the Equity Key Program can be used for second homes and investment properties. Like the reverse mortgage, REX can only be used on the primary home. Additionally, REX is open to any age group whereas Equity Key targets the 65-85 year age group which is looking at reverse mortgage loans.
Question of the Day: Do you find it interesting that there are now alternatives to alternative reverse mortgage loans?
