American Senior Lending has rolled out EquitySelect, an innovative first-lien home equity loan aimed at enhancing financial flexibility for retirees. This product stands out by offering a non-recourse structure, meaning borrowers will never owe more than their home's value. It provides customizable monthly payment options, a fixed 40-year term, and eliminates annual fees and prepayment penalties, empowering seniors to manage their home equity with greater control and peace of mind.
American Senior Lending Transforms Retirement Finance with New EquitySelect Offering
In a significant development for the retirement community, American Senior Lending, a prominent national provider of home equity solutions, introduced its new product, EquitySelect, on Wednesday. This first-lien home equity loan is specifically tailored to offer enhanced financial adaptability for individuals in their retirement years. The unique aspect of EquitySelect is its non-recourse nature, ensuring that both borrowers and their heirs are protected from owing more than the property's market value. This innovative loan structure allows retirees to select their monthly payment amounts, with options starting as low as 1% of the annual loan balance. Furthermore, it imposes a lifetime cap on monthly payments, guaranteeing that they will not exceed a predetermined limit.
David Peskin, President and CEO of American Senior Lending, highlighted that the qualification process for EquitySelect is based on this lifetime payment cap, which results in a more favorable debt-to-income ratio for applicants. He emphasized the necessity of re-imagined financial solutions for retirees facing contemporary economic challenges, describing EquitySelect as a product born from years of dedicated design and the development of a rapid quote generation tool. Peskin noted that whether homeowners seek to consolidate debts, access funds for daily expenses, or finance home renovations, EquitySelect offers a flexible, personalized, and economical way to unlock their home's equity.
Currently, this product is exclusively available for primary residences with tappable equity and must be in a first-lien position. Key features include the absence of annual fees, no penalties for early repayment, and a consistent 40-year term, complete with a protected line of credit. The company has also announced that a second-lien version of EquitySelect is under development. A pilot program demonstrated the product's benefits, with a 75-year-old borrower successfully qualifying for a $300,000 EquitySelect loan, receiving $150,000 at closing. Their initial monthly payment was a mere $126, projected to rise no higher than $391 over the 40-year term, even after drawing down the remaining balance, until the final balloon payment. Eric Ellsworth, Executive Vice President of Sales at American Senior Lending, remarked that EquitySelect empowers homeowners by providing more choice, moving beyond traditional 'either-or' mortgage product limitations. He underscored that the product integrates desirable aspects of existing mortgage solutions into one adaptable offering, a concept validated by positive feedback from pilot broker partners. This launch comes as the average U.S. mortgage holder possesses approximately $307,000 in home equity, contributing to a national total of $17.5 trillion, marking a substantial increase since the onset of the COVID-19 pandemic.
This initiative by American Senior Lending brings a fresh perspective to retirement planning, offering a robust financial instrument that prioritizes the homeowner's flexibility and security. It serves as a reminder that innovative financial products can significantly enhance the quality of life for retirees by providing tailored solutions to access their most valuable asset – their home equity – without undue burden. This move not only addresses immediate financial needs but also offers long-term stability in a fluctuating economic landscape.