American Senior Lending, a national home equity solutions company, launched EquitySelect, a first-lien home equity loan designed to give retirees more financial flexibility. The nonrecourse loan — meaning that borrowers and their heirs will never owe more than the home is worth — lets borrowers choose their monthly payments, with options as low as 1% annually, and caps lifetime monthly payments so they never exceed a set amount. Qualification is based on the lifetime cap, resulting in lower monthly payments when determining the debt-to-income ratio (DTI). The product — available only in first position on primary residences that have tappable equity — carries no annual fees, no prepayment penalty and a fixed 40-year term with a protected line of credit. A second-lien version is in development. A pilot program showed that a 75-year-old borrower qualified for a $300,000 EquitySelect loan, drawing $150,000 at closing. The initial monthly payment was $126 and will not rise above $391 during the 40-year term, even after tapping the remaining balance, until the final balloon payment is due. “EquitySelect is about giving homeowners more choice after being forced into an ‘either-or’ box for too long,” said Eric Ellsworth, executive vice president of sales at American Senior Lending. “EquitySelect breaks that mold by combining desired features of existing mortgage products into one flexible, highly tailored financial solution. Feedback from our pilot broker partners confirms what we’ve long known: consumers want a more flexible way to access their equity.”