According to the Wall Street Journal, Equity Release mortgages are seeing a rise in popularity in the USA. It is noted that this is down to the attractiveness of the schemes along with the decline in the availability of jumbo reverse mortgages.
A relatively new concept in America, equity release also known as equity sharing, has seen applications rise up to 118% from January 2008 – June 2008.
This goes to show that equity release is here to stay. After tackling the difficult USA market, equity release mortgages must have something about them. Typically, homeowners are using the release equity for very similar purposes as those in the UK, with home improvements coming up high on the list. A lot of the homeowners are using the equity to invest wisely in stocks and derivatives in order to secure a better stream of income.