please define the "REX agreement"
glossary FAQ: glossary.
Colt W. From United States
10 March, 2009
An alternative to a home equity line of credit (HELOC) and refinancing that allows homeowners to access the equity in their home. The agreement is offered by REX & Company, and it gives homeowners a cash payment of 12 to 17% of their home's market value under the stipulation that REX & Company receives 50% of the increase in the house's value when it is sold.
This program is designed for homeowners with above average credit, with single-family detached houses. In addition, homes valued in the top or bottom 10% of their local market cannot participate.
For example, if you own a house worth $400,000 and you sign a REX agreement, then you could be eligible for a cash payment of $48,000-68,000. For the purpose of this example, lets say you took $50,000. If you sold your house 10 years later for $600,000, you would owe REX & Company $150,000, calculated as the return of the initial payment plus one half of the increase in your homes value ($50,000 + [$200,000/2] = $150,000). In this example, you would have paid an annualized interest rate of 11.6%.
Here is another example, where the results are not as pretty. As in the above example, your house is worth $400,000 when you sign the REX agreement, and you are given a lump sum payment of $50,000. Let's say that there is a family emergency, and you have to sell your home two years later for $425,000 (approximately 3% growth rate per year). In this case, you would owe REX & Company $62,500. If you still owed $370,000 (a definite possibility if you had a mortgage with a long amortization, had a small downpayment, or had an interest-only mortgage), you could be out of pocket $7,500. In this example, the annualized interest rate was 11.8%.
Depending on your individual financial situation, this may or may not be an acceptable strategy. Prudent home owners should talk to a financial professional about their options before deciding on any method of accessing the equity in their home. Visit etoro.info
More questions
-
please define the "zombie debt"
glossary glossary FAQ, By: E. Edwards from United States, 17 September, 2009. -
what is "dividend irrelevance theory"?
glossary glossary FAQ, By: X. Bolton from Cork, Ireland, 19 February, 2009. -
Which site has got the biggest amount of featured currencies to chose from, in your opinion?
currency-num money FAQ, By: Jose G. From Pasadena, United States, 07 April, 2009. -
Can you refer me to a site that has not that big leverage rates
low-leverage money FAQ, By: Karson E. From Irvine, United States, 12 July, 2009. -
please define a "living wage"
glossary glossary FAQ, By: P. I. From United Kingdom, 23 December, 2008. -
Is there a forex site that's popular for its not that big min deposit that you can refer me to
min-deposit money FAQ, By: H. Dorsey from Ireland, 07 November, 2009. -
Will you help me if I need a foreign exchange platform with kind customer support?
service general FAQ, By: W. K. From Monaco, 23 May, 2009. -
what is a "paid up policy"?
glossary glossary FAQ, By: Kaylin H. From United States, 20 April, 2009. -
do you know what an "arbitrage" is?
glossary glossary FAQ, By: F. X. From Geneve, Switzerland, 08 December, 2009. -
Do you know of any forex site that's popular for its not that big commission charges that you can advice me of
commission money FAQ, By: T. Cooley from Southport, United Kingdom, 12 January, 2010.
- Interbank FX:
- Interbank FX was established as a web-based foreign exchange firm. Though starting off to a silent start, and throughout the prior years, Interbank FX has grown into one of the most thriving systems online.
- Interbank FX's Specs:
- Interbank FX sports an array of educational courses and a unique production walk-through platform. Honestly, this program's not really about state of the art, but instead, it employs the more proven intricacies of it's predecessors. It's more a question of aesthetics, it is nothing to do with right or wrong. This forex has a gadget friendly system and round the clock access. Know, too, that if you think that less is more, I suggest you look elsewhere. This program's local technology is unusually slow and is awkwardly laid out, but it does deliver, though, consistent degree of reliability of the server communication.
- Pluses:
- - 24 Hour Service - Pleasant Graphics - Beginner Friendly - Customer Support
- Minuses:
- - High Minimum Deposit - Download - Confusing Options
- Conclusion:
- A dependable yet mediocre option.
Categories
- FX FAQ
- Questions about forex platform for mac, alpari forex platform, forex metatrader platform, etc.
- TECHNICAL
- Questions about based forex trading platform, free forex platform, web based forex platform, and more.
- PLATFORM QUALITY
- Questions about forex trading platform that, web based forex platform, top forex platform, and more.
- MIN-DEPOSIT
- Questions about easy forex trading platform, forex platform reviews, web based forex trading platform, and more.