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Does the HEFI Owner share in the amortization of the mortgage principal by the homeowner?

amortization hefi Homeowner mortgage owner Principal share
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Does the HEFI Owner share in the amortization of the mortgage principal by the homeowner?

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No. The HEFI is currently structured so that it shares a fraction of the value of the house (at sale or redemption) less the new (or original) mortgage’s initial principal balance. Therefore, payments by the homeowner that reduce (amortize) the loan principal will fully benefit the homeowner.

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