Home equity investment companies, compared
Rule out a HELOC first. Then compare on cost, not brand.
- Before choosing an HEI company, rule out a HELOC or home-equity loan. Those are usually far cheaper.
- If an HEI is truly the fit, compare on term length and the upfront fees.
- Check how each one values your home at the start. The starting discount is where cost hides.
- Then compare the appreciation share and the cost cap.
- The catch: every HEI takes a share of your home's future value. The one that fits is the one that costs you least in your own scenario.
| Company | Term | Upfront fee | The catch |
|---|---|---|---|
| A HELOC (if you qualify) Cheaper first | 10–20 yrs | ~$0–500 | You make a monthly payment, and it needs income to qualify. But it keeps your future appreciation. |
| Point | 30 yrs | ~3–5% | Values your home at the start, then takes a share of the gain from there. |
| Hometap | 10 yrs | ~3% | Shorter term means the settlement comes due sooner, which can force a sale. |
| Unlock | 10 yrs | ~4.9% | Allows partial buyouts, but the share applies to a discounted starting value. |
Where the cost really lives
A home equity investment hands you a lump sum now. You make no monthly payment and pay no interest. In exchange, the company takes a share of what your home is worth when you sell or buy them out. That trade sounds simple. The cost hides in three places.
The starting value. Most companies value your home below its market price at the start. That discount is not a footnote. It sets the baseline their share is measured against, so a bigger discount quietly costs you more at the end.
The share and the cap. The appreciation share is the slice of the gain they take. The cost cap is the ceiling on what you can owe. In a market that climbs fast, the cap can be the number that decides the deal.
Run your own numbers before you choose. The home equity investment calculator shows the settlement under a rising market. And check whether a HELOC reaches the cash for less first.
The main companies, one by one
Point. The term runs up to 30 years, the longest of the three. That gives you room, but a long term in a rising market means a larger share to settle later. Read the Point review for the valuation method and the cap.
Hometap. The term is 10 years, so the settlement comes due sooner. That can force a sale if you can't buy them out in time. Read the Hometap review for how the starting value is set.
Unlock. Also a 10-year term, with partial buyouts along the way. The share still applies to a discounted starting value, so model it before you sign. Read the Unlock review for the details.
Every HEI takes a share of your home's future value. There is no version of this that doesn't.
So the company that fits is the one whose valuation, share, and cap cost you least in your own appreciation scenario. Run the calculator against your home, then rule out a HELOC before you commit.