Equity Investment vs. a Loan | See What Each One Costs

You get the cash today. You won't know the cost for years.

What you pay back depends on what your home is worth years from now. If it gains value, the bill grows with it. See the difference in two taps.

Keep every dollar your home gains in value.
All-new EquitySelect, open at any age.
A licensed direct lender, not an investment company.

What does a share of your home cost?

Two taps to see the difference.

1. What is your home worth?

Over 10 years, an equity agreement could cost you

$57,820 more

than a reverse mortgage for the same cash.

Equity agreement $233,055

Reverse mortgage, all costs in $175,235

You may not have to give up a share at all.

All-New EquitySelect, a flexible HELOC with no age requirement
Qualify on a capped payment, not a traditional HELOC payment
Choose from several payment plans
At 62+ you can compare an FHA-insured reverse mortgage as well

See what you could get instead

Two minutes. Free, and no obligation to proceed.

Assumes 10 years, 4% growth a year, a 30% share of your home’s value, and a 7.5% note rate.

Illustration only. Not an offer, quote, or commitment to lend. See disclosure 1

Change these assumptions

What is that share taken from?

Share the agreement takes 30%

Years until you sell or settle 10 years

Growth in home value each year 4.0%

At that rate your home would be worth $1,110,183.

Assumed note rate 7.5%

An illustration, not an offer. Your annual percentage rate will be higher than the note rate.

Upfront costs added to the loan $24,000

Covers the FHA upfront insurance premium, origination, and closing costs. An ongoing 0.5% yearly FHA premium is also included.

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Three ways to reach your equity

The same cash. Three different things you give up to get it.

Reverse mortgage details refer to the FHA-insured HECM program. What you qualify for depends on your state, your age, and your home. See disclosure 2
Feature	Equity investmentWhat you're comparing	All-New EquitySelectA HELOC. Any age, including 62+.	Reverse mortgageAn added option at 62+
Do you know the cost up front?	No. It depends on what your home is worth later.	Yes. The rate is set when you close.	Yes. The rate is set when you close.
Money your home gains	You give up a share. The more it gains, the more you pay.	You keep all of it	You keep all of it
Monthly mortgage payment	None	Choose from several payment plans	None required
When it comes due	On a set date, often 10 years out, ready or not	On the schedule you agree to	When you leave the home, sell, or pass away
How you qualify	Home value and condition, with lighter income review	On a capped payment, not a traditional HELOC payment	On age, home value, and current rates

Get my free estimate Takes about two minutes. No obligation.

All-New

EquitySelect

A flexible home equity line of credit. Reach your equity, pick from several payment plans, and qualify on a capped payment instead of a traditional HELOC payment. Open at any age.

Qualify on a capped payment Your qualifying payment is capped rather than based on a traditional HELOC payment.

Payment plans you choose Pick the plan that fits how you actually use the money.

Open at any age Under 62 or well over it. Turning 62 doesn’t remove this option, it just adds another one.

Eligibility and terms vary. Not all applicants qualify. See disclosure 2

Find out what you could get without giving up a share

Answer two quick questions and a licensed loan officer will show you the amount you may qualify for. If an equity agreement really is the better deal for your situation, we'll tell you that too.

Already have an offer in hand? Bring its terms and we'll go through them with you line by line.
You'll speak with a licensed loan officer, not a call center.
Free, with no obligation to proceed, and nothing to sign.

See what you could get instead

Three quick taps. They tell us which programs you may qualify for.

What state is your home in? Please choose your state.

We're licensed in California, Florida, Arizona, Colorado, Nevada, and Idaho, so we aren't able to help with a home in another state right now. We'd rather tell you that up front than take your details.

Where are you with an equity agreement?

Are you 62 or older?

EquitySelect is open to homeowners at any age. This just tells us whether a reverse mortgage is available to you as well.

Where should we reach you?

A licensed loan officer will call to go through your options.

First name Required.

Last name Required.

Phone number Please enter a 10-digit phone number.

Email (optional) Please check the email address.

Home ZIP code Please enter a 5-digit ZIP code.

By submitting my information through this site, I authorize HighTechLending Inc doing business as American Senior Lending to contact me by email or telephone and/or mobile device (including SMS and MMS text messages) at the number provided through the use of an automatic telephone dialing system or an artificial or prerecorded voice about an inquiry, any application submitted, loan or account, and/or regarding products, services, or promotions available. I authorize HighTechLending Inc doing business as American Senior Lending to contact me even if the telephone number provided is currently listed on a corporate, state, and/or federal Do-Not-Call list(s). I understand that I am not required to give my consent as a condition of purchasing any goods or services from HighTechLending Inc doing business as American Senior Lending. I may revoke my consent at any time. To revoke my consent with HighTechLending Inc doing business as American Senior Lending I can contact marketing@americansenior.com. I understand that messaging and data rates may apply.

Scroll inside the box to read the full disclosure.

Thank you. We have your request.

A licensed loan officer will call you shortly. If you'd rather not wait, reach us at (800) 555-1234.

What happens when the term ends

The part that catches people off guard.

You get cash today, and your home keeps gaining

No monthly payment, and often easier to qualify than a loan. But every dollar your home gains from here is shared, because the percentage is taken from what your home is worth at the end.
The term reaches its end date

Often ten years. The whole amount comes due whether or not you planned to move, and whether or not you have the money. This is the first time you find out what it really cost.
You sell, refinance, or pay it off

The all-new EquitySelect may be able to pay it off without selling your home, at any age. At 62 or older, an FHA-insured reverse mortgage is a second option worth comparing. Worth knowing before the date arrives.

See what you may qualify for Two minutes. Free, and no obligation.

American Senior Lending is a DBA of HighTechLending, Inc., NMLS #7147. Equal Housing Opportunity. Licensed by the California Department of Financial Protection and Innovation, and licensed in Florida, Arizona, Colorado, Nevada, and Idaho. Verify our licensing at NMLS Consumer Access. Not all applicants will qualify. This is not a commitment to lend. Programs, rates, terms, and conditions are subject to change without notice.

Disclosures

1. About the comparison tool. Illustration only. This is not an offer, a quote, or a commitment to lend. Figures are estimates based on the range you chose and assume steady growth in home value, no monthly payments, and no further draws after closing. Actual rates, fees, and agreement terms vary, and your results will differ. The reverse mortgage figure includes an assumed 0.5% yearly FHA insurance premium in addition to the note rate, and your annual percentage rate will be higher than the note rate shown. A loan balance grows over time whether or not your home goes up in value, and you remain responsible for property taxes, homeowners insurance, and property maintenance. Equity agreements vary widely. Some apply a discounted or risk-adjusted starting value that raises your cost, and some limit what you owe if your home loses value, in which case an equity agreement may cost less than a loan. Compare using the terms in your own offer.

2. About the products compared. EquitySelect is a home equity line of credit offered by HighTechLending, Inc. Eligibility, terms, rates, draw periods, and availability vary by state and by applicant, and not all applicants will qualify. Reverse mortgage details refer to the FHA-insured Home Equity Conversion Mortgage program. Borrowers must be 62 or older, and some proprietary programs begin at age 55. Comparison points describe general product characteristics and not the terms of any particular company's offer. Equity investment agreements differ widely between providers. Review your own agreement for its actual terms. This is not a commitment to lend.

This material is not from HUD or FHA and has not been approved by HUD or any government agency. American Senior Lending is not affiliated with or acting on behalf of any government agency. The named companies and products referenced on this page are the property of their respective owners and are not affiliated with, and do not endorse, American Senior Lending.

With a reverse mortgage, you must continue to pay property taxes, homeowners insurance, and maintain the property, and keep the home as your principal residence. Failure to meet these obligations may result in the loan becoming due and payable. The loan balance grows over time and interest is charged on the outstanding balance. Borrower must be 62 or older; some proprietary programs are available beginning at age 55.

Calculator results are illustrations based on the numbers you enter and are not an offer, a quote, or a commitment to lend. Actual costs depend on your program, note rate, annual percentage rate, fees, home value, loan term, and the specific terms of any agreement you may hold. The reverse mortgage illustration assumes a lump-sum draw at closing, no further draws, no monthly payments, and financed closing costs. Equity investment terms vary widely by provider and by offer. Figures shown reflect only the assumptions you select and are not representative of any particular company's product. Consult your own agreement, and consider speaking with a HUD-approved housing counselor before entering into either arrangement.

Call (800) 555-1234 Get my estimate

You get the cash today. You won't know the cost for years.

What does a share of your home cost?

Three ways to reach your equity

EquitySelect

Find out what you could get without giving up a share

See what you could get instead

Where should we reach you?

Thank you. We have your request.

What happens when the term ends

You get cash today, and your home keeps gaining

The term reaches its end date

You sell, refinance, or pay it off

Eric Ellsworth

EVP of Sales | NMLS #225143