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The REX Agreement: Accessing Home Equity without a Loan | Add Comment

REX vs. Reverse Mortgage 4/7/2008

Thanks for your article. It includes many facts, and many partial facts. What I found interesting is how you included the notion that they "don't really position" REX Agreements as competition to reverse mortgage, yet you follow that up with several direct comparisons to reverse mortgage. In one carefully worded comment by Mr. Cusack, "you're very limited in how much debt you [can] have on the property". That's his way of saying that the proceeds to a reverse mortgage must be sufficient in paying off any existing debt against the home, which for seniors, is one of the biggest benefits. Being on a limited income AND having a mortgage payment (which may adjust and put them out of their homes) is a huge stress on seniors. Why not get a loan that gets rid of your payments than an "agreement" which needs to be paid back in ADDITION to your existing mortgage obligation? For most seniors, getting rid of the mortgage payment gives them the margin they need to live comfortably for the rest of their lives. I'm limited by space, so rather than list all the ways a REX Agreement pales in comparison, you may read an article I wrote on this very topic not long ago at http://forwardbyreverse.wordpress.com/2008/03/10/reverse-mortgage-vs-rex-agreements/

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