Latest news with #HomeEquity
Yahoo
13-06-2025
- Business
- Yahoo
Nada's U.S. Home Equity Fund I Acquires $10 Million in Home Equity Agreements to Expand Diversified Portfolio
Nada's U.S. Home Equity Fund I has acquired 132 home equity agreements for more than $10 million, expanding its portfolio and accelerating investor access to the $34T U.S. home equity market. Dallas, TX, June 12, 2025 (GLOBE NEWSWIRE) -- U.S. Home Equity Fund I (US HEF), a first-of-its-kind real estate investment fund managed by Nada Asset Management (Nada), has acquired 132 Home Equity Agreements (HEAs) from an affiliate in a $10 million+ transaction. The acquired HEAs expand the fund's diversified portfolio of owner-occupied homes and further advance its mission to provide accredited investors with direct access to the $34 trillion U.S. home equity market. The transaction marks an important step in scaling the fund's portfolio with already-originated assets. These agreements span a wide range of geographies, property types, and homeowner profiles, helping accelerate capital deployment into a fast-growing investment category. Nada will host a live call on Thursday, May 22, 2025, at 2:00 PM EDT to provide a detailed overview of the newly acquired home equity agreements. The call will cover the geographic distribution, underwriting process, expected performance, and how these assets fit into the broader fund strategy. Investors and interested parties can register by clicking here. Launched earlier this year, U.S. Home Equity Fund I is designed to bring institutional-grade access and structure to home equity investing. Through a diversified pool of HEAs, the fund offers investors exposure to residential real estate appreciation while limiting downside risk through capped exposure and asset-level diversification. What is a Home Equity Agreement (HEA)? Unlike traditional debt-based financing, a Home Equity Agreement allows homeowners to tap into their equity without monthly payments or interest. In exchange for a lump-sum payment, the homeowner agrees to share a portion of their home's future value with the fund. For investors, this structure provides a way to participate in home price appreciation without the burdens of property ownership. 'Home equity has long been the foundation of wealth in the U.S., yet until recently, there's been no direct, scalable way for investors to participate,' said John Green, Co-Founder and COO of Nada. 'HEAs have changed that, and this acquisition is another step forward in building the most diversified, investor-aligned home equity portfolio available.' The U.S. home equity market has grown to over $34 trillion, nearly tripling since 2013. Institutional adoption of HEAs has accelerated, with $1.1 billion in securitizations completed in 2024 and rating methodologies from DBRS Morningstar and KBRA helping cement the asset class in institutional portfolios. A Structured Approach for Long-Term Growth U.S. Home Equity Fund I targets net IRRs of 14-17%, focusing on owner-occupied homes for stability and emphasizing downside protection through an exchange rate mechanism unique to HEAs. With assets originated and serviced by Nada through its platform, the fund is designed for transparency, and scalability. 'This is a defining moment for HEAs,' said Tore Steen, CEO of Nada. 'The market is now large enough, and the infrastructure mature enough, for home equity to stand alongside more traditional real estate assets in investor portfolios. U.S. Home Equity Fund I is structured to meet that opportunity head-on. Since 2022, Nada has originated more than 250 home equity agreements comprising over $115 million in home value and its active HEA portfolio has delivered realized payoffs with a weighted average IRR of 17% since inception. To learn more, visit This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans, and business plans) and may change without notice. You are cautioned that such statements are subject to risks and uncertainties that could cause future results to differ materially from those projected. Media Contact:Kevin Vandenbossmedia@ in to access your portfolio
CNET
03-06-2025
- Business
- CNET
Compare 15-Year Mortgage Rates for June 2025
Most prospective homebuyers go for the standard 30-year fixed mortgage, but if you want to pay off your home faster and save money on interest costs, a 15-year mortgage might be a better fit. With a 15-year loan, you'll typically get a lower interest rate and build up your home equity quicker than you would with a longer-term loan. The catch is that your monthly payments will be much higher since you're paying off the loan in half the time. Before you commit, carefully review your budget to make sure you can comfortably handle the higher monthly costs. We'll walk you through how 15-year mortgages work and what rates are doing now so you can decide if the long-term savings outweigh the short-term cost. Current 15-year mortgage rate trends Mortgage rates sharply climbed in early 2022 when the Federal Reserve began raising interest rates to fight inflation. The central bank shifted course and started lowering rates late in 2024, but mortgage rates have remained elevated, and interest rate cuts have been on hold throughout 2025. So far this year, 30-year fixed rates have generally stayed between 6.5% and 7%, while 15-year mortgages have fluctuated between 5.75% and 6.5%. If the Fed cuts borrowing rates again this year, we might see a slight easing-off of 15-year mortgage rates, perhaps moving closer to 5%. However, it's impossible to say where rates will land because they're influenced by a host of economic factors, including the Fed's policies, inflation and labor data, the bond market and investor sentiment. Product Interest rate 30-year fixed-rate 30-year fixed-rate FHA 30-year fixed-rate VA 30-year fixed-rate jumbo 20-year fixed-rate 15-year fixed-rate 15-year fixed-rate jumbo 5/1 ARM 5/1 ARM jumbo 7/1 ARM 7/1 ARM jumbo 10/1 ARM 30-year fixed-rate refinance 30-year fixed-rate FHA refinance 30-year fixed-rate VA refinance 30-year fixed-rate jumbo refinance 20-year fixed-rate refinance 15-year fixed-rate refinance 15-year fixed-rate jumbo refinance 5/1 ARM refinance 5/1 ARM jumbo refinance 7/1 ARM refinance 7/1 ARM jumbo refinance 10/1 ARM refinance Updated on June 02, 2025. We use information collected by Bankrate to track daily mortgage rate trends. The above table summarizes the average rates offered by lenders across the country. What is a 15-year fixed mortgage? A 15-year fixed mortgage is a loan you use to buy a house that you'll pay off over 15 years with a set interest rate. Because it has a shorter term than a mortgage loan with a 30-year term, the monthly payments are higher than with a fixed 30-year loan. 15-year mortgage vs. 30-year mortgage The main difference between a 15-year mortgage and a 30-year mortgage is that a 15-year mortgage will ultimately cost you less since you'll have a lower interest rate and pay considerably less in interest over the lifetime of the loan. But paying off the loan in a shorter amount of time means your monthly payments can be almost double what they are for a 30-year loan. The pros of a 15-year fixed mortgage Shorter loan term: A 15-year fixed mortgage takes half the length of time to pay off compared with a 30-year mortgage. You'll have higher monthly payments, but you'll pay this home loan off twice as fast, resulting in less interest over time. A 15-year fixed mortgage takes half the length of time to pay off compared with a 30-year mortgage. You'll have higher monthly payments, but you'll pay this home loan off twice as fast, resulting in less interest over time. Lower interest rates : Usually, 15-year fixed mortgages have lower interest rates than 30-year fixed mortgages. This is partly because you're paying back your lender sooner than with a longer-term loan, which means less risk for your lender. : Usually, 15-year fixed mortgages have lower interest rates than 30-year fixed mortgages. This is partly because you're paying back your lender sooner than with a longer-term loan, which means less risk for your lender. Build equity in your home much faster: A 15-year fixed mortgage allows you to build more equity in your home faster than with a longer-term mortgage. This means you can enjoy some of the advantages of homeownership, such as refinancing your home loan or tapping into your home equity for financing options. The cons of a 15-year fixed mortgage Higher monthly payments: One downside to a 15-year mortgage is that you're stuck with high monthly payments for the duration of the home loan. If you make a 20% down payment on a $500,000 mortgage at a 7% interest rate with a 15-year fixed mortgage, your monthly payment will be about $3,994, compared to $3,060 with a 30-year fixed mortgage. One downside to a 15-year mortgage is that you're stuck with high monthly payments for the duration of the home loan. If you make a 20% down payment on a $500,000 mortgage at a 7% interest rate with a 15-year fixed mortgage, your monthly payment will be about $3,994, compared to $3,060 with a 30-year fixed mortgage. The maximum mortgage amount you can borrow is smaller: Because you're making high payments every month, lenders could offer you a smaller mortgage amount than they might with a 30-year loan. This reduces the risk to the lender that you will default on the loan. Because you're making high payments every month, lenders could offer you a smaller mortgage amount than they might with a 30-year loan. This reduces the risk to the lender that you will default on the loan. Less financial flexibility overall: If you commit to a 15-year mortgage with a high monthly payment, it could limit your ability to afford other expenses. It means you may have less money to contribute to investment or retirement accounts, or a smaller financial cushion to fall back on if you run into difficulties. Is it worth refinancing to a 15-year mortgage? The main reasons people choose to refinance their home loans are to lower their interest rate or adjust the length of their loan term. Given today's high mortgage rates, you may not be able to secure a lower interest rate, but shortening your loan term can still help you save money. For instance, if you refinance your 30-year mortgage to a 15-year mortgage, you'll end up with higher monthly payments but save on interest and build equity faster in the long run. Before refinancing, consider your financial goals, how much you have left to pay on your mortgage and how long you plan to stay in one place. If you're almost done paying off your primary mortgage or plan to move in the next few years, refinancing to a 15-year mortgage may not offer much financial benefit. If you like the idea of paying off your mortgage sooner, but you're worried about committing to higher monthly payments, there's an alternative. If you stick with a 30-year mortgage, see if you can make additional payments throughout the year, which will help shorten your loan term. This allows you to effectively pay off your 30-year mortgage sooner without locking yourself into the higher monthly payments that are attached to a 15-year mortgage. Alternatives to a 15-year mortgage 30-year mortgage: If you're unable to afford the higher monthly payments with a 15-year mortgage, a 30-year mortgage is a good option. While you'll pay more in interest overall, the lower monthly payments can make purchasing a home more affordable. If you're unable to afford the higher monthly payments with a 15-year mortgage, a 30-year mortgage is a good option. While you'll pay more in interest overall, the lower monthly payments can make purchasing a home more affordable. 10-year mortgage: If you can afford the higher monthly payments that come with a 10-year mortgage, you'll save yourself five years of interest payments. However, you'll likely require a higher income and credit score to qualify. If you can afford the higher monthly payments that come with a 10-year mortgage, you'll save yourself five years of interest payments. However, you'll likely require a higher income and credit score to qualify. Government-backed loan: If a 15-year mortgage doesn't work for your particular financial situation, you can also look into a government-backed loan like an FHA loan, VA loan or USDA loan, which will typically have much lower credit score requirements and often allow you to make a small down payment or no down payment at all. FAQs You can use CNET's mortgage calculator to help determine how much you can afford for a house and work out how to manage financially. The tool takes into account your monthly income, expenses and debt payments. In addition to those factors, your mortgage rate will depend on your credit score and the zip code where you are looking to buy a house.
Associated Press
18-02-2025
- Business
- Associated Press
Nada Launches U.S. Home Equity Fund I, Offering Access to One of the Fastest-Growing Asset Classes in Real Estate
02/18/2025, Dallas, TX // KISS PR Brand Story PressWire // Nada has announced the launch of U.S. Home Equity Fund I (US HEF), a first-of-its-kind fund designed to provide qualified investors with direct exposure to the $35 trillion U.S. home equity market through a diversified portfolio of Home Equity Agreements (HEAs), available on their newly launched investment platform, Homeshares. Since 2013, U.S. home equity has nearly tripled to $35 trillion ( Federal Reserve, Q3 2024), and HEAs have rapidly gained institutional adoption with banks, insurers, and private credit funds increasing participation over the past two years. In 2024, $1.1 billion in HEA-backed securitizations and new rating methodologies from DBRS Morningstar and KBRA cemented their place in institutional portfolios. With HEAs now firmly established as a scalable investment, US HEF expands access beyond institutions, allowing qualified accredited investors, family offices, private wealth groups, and a broader set of alternative asset managers to participate in a structured, scalable approach to home equity investing. 'We are witnessing the emergence of one of the most exciting new asset classes in real estate,' said John Green, Founder and COO of Nada. 'Home equity is the single largest source of wealth in the U.S., yet until recently, the only way to access it was through direct homeownership or traditional mortgage-backed securities. HEAs have changed that, creating a new way for investors to participate.' What is a Home Equity Agreement (HEA)? A Home Equity Agreement (HEA) gives homeowners financial flexibility by accessing their home equity without debt, monthly payments, or interest. Instead of a loan, they receive an upfront lump-sum payment in exchange for a share of their home's future value. For investors, HEAs provide direct exposure to residential real estate appreciation with enhanced returns without the burdens of property ownership. Unlike traditional homeownership, where appreciation is captured dollar-for-dollar, HEAs are structured so that investors earn a multiple of the home's appreciation rate, accelerating returns relative to home value growth. A Structured Approach to Home Equity Investing U.S. Home Equity Fund I provides investors with a structured, risk-adjusted way to gain exposure to residential real estate—one of the most stable and high-growth asset classes. US HEF I is built for risk-adjusted growth and institutional liquidity, targeting 14-17% net IRR through exposure to home price appreciation. The fund focuses on owner-occupied properties for stability and diversification while limiting exposure to 35% of any single property's value to ensure downside protection. With assets positioned for future securitization or institutional sales, US HEF offers a scalable, institutional-grade approach to home equity. With home equity emerging as a recognized institutional investment class, U.S. Home Equity Fund I provides an institutional-caliber approach to an asset that has been a cornerstone of wealth creation for decades—now structured for broader participation. Nada: Leading the Next Era of Real Estate Ownership Nada builds on six years of innovation in home equity investing. Having transacted over $100M in gross asset value. Its active HEA portfolio has delivered realized payoffs with a weighted average IRR of 19.3% since inception. ' This is a defining moment for HEAs as an asset class," said Tore Steen, CEO of Nada. " U.S. Home Equity Fund I is structured to capitalize on this momentum—offering a rare opportunity in a rapidly growing market. ' For more information, visit Forward-Looking Statements This press release may contain forward-looking statements describing future expectations, plans, results, or strategies. These statements are subject to risks and uncertainties that may cause actual outcomes to differ materially from those projected. Changes in product offerings, regulatory plans, and business strategies are potential factors influencing such differences. Media Contact:
