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Home Equity Investment Calculator

HEI products give you cash today in exchange for a share of future appreciation. Compute total payback at exit and the effective annual cost — then compare to a HELOC or home equity loan.

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Total investor claim at exit

$140,031

cash returned + appreciation share

Effective annual cost

5.76%

if appreciation is realized

Your appreciation share

$240,122

Projected future value

$925,153

+$300,153 appreciation

How these products work

Home equity investments (Point, Unlock, etc.) give you cash today in exchange for a share of your home's future appreciation. No monthly payments, no interest — but you pay more at exit if your home appreciates.

Compare the effective annual cost to a HELOC or home equity loan rate. Cheaper than a HELOC if appreciation is slow; more expensive if appreciation is fast. Also note many have termination fees, minimum payoff requirements, and can force a sale at expiration.

How to Use

  1. Enter property value and current mortgage balance.
  2. Enter the cash you'd receive from the HEI provider.
  3. Enter the percentage of future appreciation the investor takes (typically 1.5–4× the cash-as-percent-of-value).
  4. Enter expected annual appreciation and the term until you'd exit.
  5. Read total payback and the effective annual cost.

Frequently Asked Questions

How does an HEI differ from a HELOC?

HEIs charge no interest and require no monthly payments — you pay back the cash plus a share of appreciation at exit. HELOCs charge interest and require payments but the payback is fixed. HEIs are 'free' if the home doesn't appreciate but expensive if it does.

What's a typical investor share?

Often 1.5–4× the cash-as-percent-of-value ratio. Take 10% of value as cash → investor takes 15–40% of future appreciation. Specific terms vary by provider and underwriting.

When does an HEI cost more than a HELOC?

When appreciation is fast and term is long. A 6% HELOC vs an HEI: if your home appreciates 6%+/yr, the HEI costs more. If appreciation is 2%/yr, the HEI is much cheaper.

What if I want to pay off the HEI early?

Most HEIs allow early payoff but the appreciation share still applies based on appraised value at payoff. Read the contract carefully — minimum payoffs and appreciation floors can hurt early-payoff economics.

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