Savings     (site under construction)


 

Save or Buy A Dream Home

 

We hope to earn a return on PayHome by sharing in the home appreciation, if any.  We thus have the option after five years to call our investment and receive a percent of the net home appreciation in addition to the cash provided upon purchase. Our interest in the home cannot be encumbered by any debt obligation other than a single fixed-rate mortgage.

PayHome is the amount of cash requested before a transaction fee of 2%. For example, on a $500,000 house with a 10% Payhome, you can save $49,000 upon purchase ($50,000 less 2%) to use for any purpose:

Home

$500,000   

$500,000

Down Payment

$100,000  

$50,000

Investment

      --  

$50,000

Mortgage

$400,000

$400,000

Savings (after fee)  

      --  

$49,000

With PayHome, buyers can afford more accommodating homes. For example, assume a buyer has $100,000 in savings and qualifies for a $400,000 mortgage:

Home

$500,000   

$585,000

Down Payment

$100,000  

$100,000

Investment

      --  

$85,000

Mortgage

$400,000

$400,000

Upon payoff, the homeowner repays the cash provided in addition to a percentage of the net price appreciation. The percentage is the percent of the home purchase price that was invested multiplied by an Equity Buyout Ratio of 4 to 1. In other words, if the cash was 10% of the purchase price, the owner repays the cash in addition to 10% x 4 or 40% of the net price appreciation.

For example, if the cash provided was 10% on a $500,000 house that appreciates to $600,000, the owner would repay the $50,000 cash plus 40% of the $100,000 appreciation for a total of $90,000. Owner's capital gain would be 60% of the appreciation, or $60,000, with a remaining equity in the home of $50,000.

 

                                                                    Copyright © 2018 PayHome Capital, LLC. All Rights Reserved. Patent Pending.