Shared Equity Mortgage Calculator
Calculate the long-term cost of a shared-equity / Home Equity Investment (HEI) product (Point, Unison, Hometap, Unlock). You receive a lump sum upfront in exchange for a future share of your home's value (e.g., 20% of appreciation + a discount on original value). Compare to HELOC, cash-out refinance, and personal loan alternatives.
What Is a Home Equity Investment?
An HEI is NOT a loan — it's an investor's purchase of a share of your home's future value. Common terms: investor advances 10-30% of current value as cash; in return, investor receives 20-40% of any appreciation when home sells/refis/term ends (typically 10-30 years). Most HEI products discount the starting value 10-25% to give investor instant 'equity.' No monthly payment during the term. Settle at sale, refi, or end of contract.
Main HEI Providers (2026)
Point — up to $500K, terms up to 30 years. Investor takes 25-32% of appreciation + initial discount. Unison HomeOwner — up to $500K, 30 year max. Investor takes 35% of appreciation; no initial discount but holds rights. Hometap — up to $600K, 10-year term. Lower share of appreciation but term forces settlement. Unlock — flexible buybacks. HomeTender — newer entrant. State availability varies — not available in all 50 states. Income/credit requirements lighter than HELOC (no DTI test typically).
Implicit APR — Usually 15-25%
HEIs are heavily marketed as 'no monthly payment' but the effective annualized cost is typically 15-25% when home appreciates at historical 4% per year. Example: borrow $100K against $500K home, agree to 32% appreciation share + 17% starting discount. After 10 years at 4% appreciation, home = $740K. Investor share = 32% × ($740K - $415K) + $85K discount = $189K. Implicit APR ≈ 6.6%. After 10 years at 7% appreciation: implicit APR ≈ 16%. Higher home appreciation makes HEIs MORE expensive in dollar terms.
When HEI Makes Sense
(1) You need cash but can't qualify for HELOC/cash-out refi (low credit, high DTI, self-employed unable to document income). (2) You want zero monthly payment to preserve cash flow during a specific period (retirement bridge, business launch). (3) You believe home prices will be flat or decline (rare but possible) — in that case investor loses, you win. (4) Senior preserving SSI/Medicaid eligibility (HEI isn't reported income but check program rules). Avoid HEI when: home is expected to appreciate significantly, qualifying for HELOC at 7-9% is feasible, or settlement liquidity will be a hardship.
Sources: Point, Unison, Hometap product disclosures 2024-2025, CFPB Issue Brief on HEIs 2024, AARP retirement-finance guidance. Last updated: May 2026.