Yes! Most borrowers can reduce their principal balance by tens of thousands of dollars. Their discounted payoff fully satisfies their debt obligation and increases their home equity.

Borrowers with low fixed-rate mortgages will receive the greatest benefit, but those with other rate structures may benefit as well. Additionally, and importantly, the borrower’s lender must be a Takara client.

Satisfying a debt obligation typically improves your credit score.

The process is very similar to a payoff or refinancing application. Borrowers are encouraged to contact their lender’s loan officer to confirm if this solution is available to them.

If the borrower is selling their home to pay off the mortgage the process will be completed within days of closing. If cash or other investments are being used the transaction can be completed very quickly. Refinancing usually takes up to 45 days.

Takara assumes the full debt obligation for the borrower's loan balance, before the discount is applied. The loan balance remains unchanged on the lenders' books. Takara upgrades the loan collateral from the borrower's home to a portfolio of risk-free securities which prepay at an accelerated rate and a higher effective yield. If you would like more information on this subject please reach out to us by completing the Contact form.

Yes. Similar to defeasance in commercial real estate, DREAM offers a method for reducing debt upon prepayment while upgrading the loan collateral for the lender. This process has been in place for several decades and subject to regulatory and compliance statutes. If you would like more information on this subject please reach out to us by completing the Contact form.

Great! Please complete the Contact form here on our website and we'll reach out to schedule an introductory call.