Equity Stake Funding

A new mortgage product (not available yet) that values the lein on the property as a percent of the assessed valuation instead of a fixed dollar amount. There are no mortgage payments with an Equity Stake Mortgage. Similar requirements to a Reverse Mortgage without the age restriction. Swapping equity in your home for bonds or preferred stock in an ESIT (Equity Stake Investment Trust) is an effective way to insure, diversify, and/or liquify the asset value of your home.

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Location: Southern California, United States

Thursday, December 01, 2005

There are some interesting ramifications to diversifying your home equity with an ESIT. If your home burns down your equity in the ESIT remains because 1,000s of individual homes are equity staked; the risk is spread over a large base.

The Chicago Mercantile Exchange started trading home price futures and options in April 2006 for 10 cities across the USA; Boston, NY, Wash. DC, Miami, Chicago, Denver, SF, Las Vegas, LA, & San Diego.

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