You shouldn’t have to make monthly payments to unlock your own equity.
The equity in your home is there because you built it. Now FirstREX can help you make the most of it.
The REX Agreement is not a loan, it is not a reverse mortgage, and in fact it is not debt of any kind. It is a real estate investment agreement that enables you to convert a portion of your home equity into immediate cash. The cash you receive from FirstREX is not debt, so there is no interest, and you make no monthly payments to FirstREX - ever.*
At the start of the REX Agreement, we invest in your home by making a lump-sum cash payment to you. You continue living in your home, and you continue to enjoy the advantages of owning your home, including any tax advantages. Unlike a loan, there are no burdensome monthly payments to make to FirstREX in order to gain access to your home equity. As long as you pay your mortgage payments, real estate taxes, insurance, and any other obligations that are or may become a lien on your home, and abide by the provisions of the REX Agreement, you make no payments to us of any kind until the REX Agreement ends.
The lump sum payment we give to you at the start does not mean we own a part of your home today. Instead, in exchange for the cash you receive, you agree that we will earn a return on our investment equal to a share of the change in value of your home. This share is called the Investor Percentage. You decide how much you are comfortable sharing (from 20% to 50%). The more you share, the more cash you can receive.
The REX Agreement typically ends when you decide to sell your home. At that time, we typically receive a portion of the sale proceeds. Our return on our investment can be positive or negative. If your home increases in value, we make money on our investment. If your home decreases in value, we typically lose money on our investment. It's that simple.
Finally, there is a way for you to access a portion of your home equity without taking on any additional debt! You can use the cash for any purpose you choose, from supplementing retirement income, to making home improvements, to reducing debt, to funding long-term care.
* During the term of the REX Agreement, you remain fully responsible for all obligations relating to any debt secured by your home, including interest charges and monthly payments. You are also responsible for paying all real estate taxes and hazard insurance premiums, and any other obligations with regard to your home.