#United States #Irvine #home equity loan #EquitySelect #American Senior Lending

American Senior Lending Unveils the Innovative EquitySelect Loan

American Senior Lending, a leader in home equity solutions, has introduced an exciting new product called EquitySelect. This innovative nonrecourse home equity loan aims to provide financial flexibility for seniors entering or currently in retirement.

The uniqueness of EquitySelect lies in its combination of various key features. Homeowners have the option to choose their monthly payment plan, which can be as low as an annualized 1%. This allows for payments that adapt to the homeowner's loan balance and needs. Each loan also includes a lifetime monthly payment cap, ensuring that payments won't exceed a set limit even if interest rates change or if the borrower utilizes their full credit line or pays less than the total interest.

One of the standout features of EquitySelect is its nonrecourse nature. This means that borrowers, and by extension their heirs, will never owe more than the value of their home. This significant protection is crucial for seniors who might be concerned about their financial legacy. Loan qualification is tied to this lifetime cap, leading to lower monthly payments based on the borrower's debt-to-income ratio (DTI).

David Peskin, President and CEO of American Senior Lending, emphasizes the importance of innovative solutions in today's financial landscape. He states, “Meeting the financial challenges of retirement requires forward-thinking solutions that offer choice and creativity. We've reimagined asset-based lending through home equity.” This product, carefully crafted over several years, aims to help seniors manage their finances more effectively, whether they're consolidating debts, accessing home equity for daily needs, or making necessary renovations to their residences.

Statistics reveal that home equity represents a significant asset for many older Americans. Recent estimates from Freddie Mac and the Federal Reserve suggest that around 50% of the nation’s total home equity is owned by individuals aged 61 and above. As these retirees grapple with rising living costs, flexible borrowing options like EquitySelect become increasingly essential.

In a pilot program, a 75-year-old borrower qualified for a $300,000 EquitySelect loan, receiving $150,000 at closing. Their initial monthly payment was only $126 for the first month and is capped at $391 for the next 40 years, regardless of any additional withdrawals or changes to the loan balance, culminating in a balloon payment when the loan term ends.

Eric Ellsworth, Executive Vice President of Sales at American Senior Lending, highlights the product’s purpose: “EquitySelect focuses on giving homeowners more options after years of restrictive choices. This innovative loan combines the most sought-after features from existing mortgage products into one highly personalized financial tool.” Positive feedback from pilot broker partners indicates that consumers desire a more adaptable method to access their equity.

EquitySelect comes with several favorable conditions: no annual fees, no pre-payment penalties, and a fixed 40-year term alongside a secured line of credit. A second-lien version is currently in the works, further expanding options for consumers.

To qualify for the loan, it’s necessary for it to be in first position on the primary residence, with available equity. Broker partners can access this product via common loan origination systems and an interactive online calculator for convenience.

For additional details, including specific terms and product calculator, visit American Senior Lending’s website.

Note: Minimum payments might not cover the entire interest charges, potentially adding interest to the total loan balance, necessitating a balloon payment at maturity. EquitySelect requires an initial draw of 50% of the credit line or $75,000, whichever is greater, along with a 7-year draw period. Withdrawals are not permitted after this period, and payments will be capped for the loan term.

About American Senior Lending

Since its inception in 2007, American Senior Lending has dedicated itself to offering dependable mortgage solutions tailored to customer needs. Their strategy intertwines excellent pricing, unique product offerings, and outstanding customer service. For comprehensive information or instant rate quotes, visit their website. Additionally, American Senior Lending holds NMLS ID #7147 (as listed on NMLS Consumer Access) and operates as an Equal Housing Lender.