How it works
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EquityKey makes a payment to homeowners and receives the right to participate in their home’s future appreciation. Unlike a reverse mortgage that takes existing equity out of a home, the EquityKey Home Option focuses on potential future growth, locking-in your current equity. Through our transaction, we invest in your home’s growth and truly become your partner in appreciation™. At the start of an EquityKey Home Option, your home is appraised and an initial value is established. EquityKey pays between 8% and 16% of a home’s value to homeowners to purchase between 50% and 100% of the home’s potential appreciation. For a home with a value of $500,000, for example, EquityKey would pay between $40,000 and $80,000. To see how much you might be able to receive from an EquityKey Home Option, use the calculator to the right. During the EquityKey Home Option, appreciation is measured using the S&P/Case-Shiller Home Price Index® (“Index”) that covers the area where your property is located. We use the Index as an objective tool to measure your home’s appreciation. The Index is managed and controlled by Standard & Poor’s, the world’s foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. We have no control over the Index or its performance. At the end of our transaction, if the Index has increased, the amount of the increase is used to establish the appreciation. We then participate in that appreciation in accordance with the terms of your agreement. If the Index is the same or lower at the end of our transaction, there has been no appreciation and, consequently, we are not entitled to any payment (assuming you have not breached our agreement or ended it early). Our transaction ends when you sell your home, transfer your ownership, or breach our agreement and don’t fix your breach. So you ultimately control how long our transaction lasts. It is important to note, though, that our transaction is intended to be a long-term transaction. If you end it early, certain charges apply.* For more information please call us at 877-234-4635 and ask for an EquityKey Account Executive. * An Early Termination Charge applies if an option agreement is ended by a homeowner before 10 years from its start. The Early Termination Charge is the greater of: (i) the amount of appreciation EquityKey is entitled to under the agreement; or, (ii) the amount paid for the option plus its origination cost of 3% of the home value, plus interest on that amount at a rate of 12% per annum.
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