Amid Uncertain and Overheated Markets, Homebuyers and Homeowners Can Now Protect Their Down Payment and Home Equity from Market Downturns
DALLAS, Feb. 12, 2018 /PRNewswire/ -- Homebuyers across the country are increasingly concerned about today's high home prices. According to CoreLogic, at least 35 of the 100 largest metropolitan housing markets are overvalued.* With these inflated, sky high values a decade after the last housing crash, many Americans cannot afford to buy. And those who can, now have to worry about buying at the top of the market.
In the event of a downturn, many wonder how they can protect their most valuable household savings: the down payment homebuyers put in to buy their home and the equity homeowners have accumulated.
Homebuyers are required to purchase homeowner's insurance, mortgage insurance for purchases with less than 20 percent down and title insurance. But often these homebuyer-paid policies protect only the lender's investment, not the buyer's. In fact, nothing in a standard mortgage protects the homebuyer from a potential out-of-pocket loss in the event of an unpredictable housing correction…unless the consumer takes one simple step to protect their investment.
+PlusSM Down Payment Protection is the only solution available to homebuyers that reimburses their down payment loss if there is a market downturn at the time they sell their home. Simply, if you sell your home for less than what you paid for it, up to the full original down payment – the amount you put in to buy the home – is insured.
"Let's say you buy a $500,000 home and put down 10 percent, or $50,000. Then the housing market goes down just 5 percent and you have to sell at that 5 percent loss. You stand to lose $25,000 – that's half of the total down payment you put in," said Joe Melendez, founder and CEO of ValueInsured. "If you have +Plus down payment protection, that $25,000 is reimbursable back to you in a check, within 30 days."
A mortgage with +Plus down payment protection covers up to a 20 percent down payment or a maximum of $200,000, whichever is less. The innovative down payment protection covers primary residences (single-family homes, condos and townhomes) and is available through mortgage lenders nationwide.
Many lenders also offer ValueInsured's Equity Protection for borrowers who want to refinance their mortgage. With +Plus℠ Equity Protection, borrowers can tap into their equity appreciation today, knowing that the refinanced equity is protected in the event that home prices decline.
"Like down payments, home equity represents a large portion of a household's wealth," Melendez said. "Having the ability to take money off the table while protecting the remaining equity is a new way of enjoying this current bull run that was not previously available to homeowners."
The housing market has historically fluctuated in ways often beyond the homeowners' control. But more importantly, home buying is an emotional decision. As homebuyers watch uncertainty grow in the stock market and see interest rates rise, they are growing more hesitant as they wonder not if but when home prices will decline. Additionally, while many were able to ride out a similar hot market a decade ago, many are still reeling from the effects of the 2007 downturn with cities such as Chicago, Las Vegas, Miami and Phoenix still 10-20 percent below their pre-bubble peaks.
But with down payment and equity protection, homeowners can ignore the unpredictability, gain control they previously lacked and buy or refinance a home with confidence – virtually risk-free.
ValueInsured is backed by Everest RE, one of the world's largest re-insurance companies, with more than $8 billion in capital. The Everest RE Group companies are rated A+ (excellent) by A.M. Best Company, A+ by S&P and A1 by Moody's.
For more information, visit http://www.valueinsured.com or call 844-448-PLUS (7587).
*According to a recent report by CoreLogic and statements made by CoreLogic CEO Frank Martell.
About ValueInsured
Based in Dallas, Texas, PVI Agency, LLC dba ValueInsured℠, is the only provider of home down payment and refinance equity protection giving homeowners greater control and flexibility to sell their home and protect their savings even in a down market. ValueInsured's +Plus℠ down payment protection and equity protection are available on mortgages nationwide and backed by one of the world's largest re-insurance companies, with more than $8 billion in capital. See policy details and +Plus availability at http://valueinsured.com.
Lesley Gamwell
Rountree Group
770-650-2603
[email protected]
SOURCE ValueInsured
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