How is Point different from a reverse mortgage?

With Point, you get many of the benefits of a reverse mortgage without the major drawbacks. As with a reverse mortgage, there are no monthly payments. A few key differences:

  • There is no minimum age to use Point. You must be 62 years old to qualify for a reverse mortgage.
  • Point doesn’t penalize you for taking a lump sum. With a reverse mortgage, choosing a lump sum costs more than getting monthly payments or a line of credit.
  • You don’t have to pay off your mortgage to qualify for a Point Home Equity Investment (HEI). A reverse mortgage requires first lien position. That means that if you have a mortgage balance, you need to pay it off using funds from the reverse.
  • Point's HEI is structured differently from traditional loans. Instead of being subject to an interest rate, you share a portion of your home value’s growth with Point. A reverse mortgage charges a predetermined interest rate, regardless of how your home value changes. 
  • You’ll never end up upside down on an investment from Point. If your home value drops beneath the Original Agreed Value your buyback cost will be smaller. 
  • The Point agreement is assumable. Unlike a reverse mortgage or a regular mortgage, this means that your heirs can assume your Point agreement. 

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