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 an "alphabet rounds"
glossary glossary FAQ, By: Cristal S. From Ireland, 14 December, 2009. -
what is the "alphabet rounds"?
glossary glossary FAQ, By: Emilie P. From Argenteuil, France, 05 March, 2009. -
what is the "synthetic call"?
glossary glossary FAQ, By: W. B. From Douglas, United Kingdom, 30 July, 2009. -
Will you name an online fx platform that's known for its good trade with EUR/USD
specific-currency money FAQ, By: Z. T. From Saint John´s, Canada, 24 February, 2009. -
Which forex site offers long time experience, to your suggestion?
established general FAQ, By: F. I. From Vaduz, Liechtenstein, 23 October, 2009. -
Which forex platform has the quickest customer support by chat, to your advice?
service general FAQ, By: O. Y. From Germany, 23 December, 2008. -
do you know what "intermediary" is?
glossary glossary FAQ, By: Haden I. From Switzerland, 06 May, 2009. -
please define a "bank for international settlements"
glossary glossary FAQ, By: Alyssa S. From United Kingdom, 02 September, 2009. -
please tell me what a "composite index of leading indicators" is
glossary glossary FAQ, By: Z. A. From Zurich, Switzerland, 03 May, 2009. -
do you know what "statement of financial accounting concepts - sFAC" is?
glossary glossary FAQ, By: Natalya J. From United States, 03 January, 2010.
- Background:
- The rather green retail online forex service provider FX Solutions is located at Saddle River Executive Centre, 1 Route 17 South, Saddle River, New Jersey, 07458 United States. FX Solutions is regulated by NFA and CFTC.
- Some Specs:
- This forex features twenty four hour trading and customer support. Honestly, this platform's not really about innovation, but instead, it uses the more established workings of previous mainstream forexes. It is nothing to do with right or wrong, it's more a question of aesthetics. This one's a great selection for a first time user as it provides an exclusively produced explanatory platform. You should also know, that if you presume that less is more - you're wrong.
- Ups:
- - Twenty Four Seven Access - Beginner Friendly - Solid Regulator - Customer Support
- Downs:
- - Confusing Options - High Minimum Deposit
- Skip to Here:
- A feature full yet somewhat complex choice. I gave it a 3 out of 5 rating.
Categories
- FX FAQ
- All about forex trading platform review, forex platform reviews, forex web platform, etc.
- TECHNICAL
- Questions about forex trading platform for mac, easy forex platform, forex platform for mac, and more.
- PLATFORM QUALITY
- Questions about forex platform review, online forex platform, based forex trading platform, and more.
- MIN-DEPOSIT
- Information about forex trade platform, mt4 forex platform, forex platform review, read more...