How Does Home Equity Guard Work?
Aug 22, 2010
Home Equity Guard is an assurance policy that protects your investment in your home by assuring its value against declines in home prices in your area. Home Equity Guard’s assurance policy pays you cash if when you sell your home the local price index has declined since the time you purchased your home. The amount paid is based on the change in the index relative to the price of your home.
Example:
Purchase a home in 2010 for $200,000. The index value is 100 points.
Sell your home in 2015. The market has declined by 10%. The price index has fallen by 10% to 90 points.
Home Equity Guard makes you a payment for $20,000 (10% x $200,000).
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