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Home Equity Sharing Calculator

Home equity sharing products (HEI) give cash today for a slice of future appreciation. This calculator compares the total cost against a traditional HELOC so you know which structure is cheaper for your specific market.

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Cheaper structure

HELOC (cheaper)

HEI exit payback

$150,638

HELOC monthly

$675

HELOC total cost

$80,975

Cost difference (HELOC − HEI)

-$69,663

How the math works

HEI products (Unison, Point, Hometap, HomeTap, Unlock) give a homeowner a lump sum in exchange for 15-50% of future appreciation. No monthly payments. Compared to a HELOC, HEI is cheaper in flat-to-moderate markets and more expensive when appreciation runs hot.

HEIs work best when the homeowner can't qualify for a HELOC (low income, DTI-constrained), is cash-flow sensitive, and expects moderate appreciation. They work worst in hot markets where the investor captures large appreciation upside.

How to Use

  1. Enter home value and amount needed.
  2. Enter current HELOC rate for comparison.
  3. Enter assumed appreciation rate — the biggest variable.
  4. Enter years until sale or buyout.
  5. Enter HEI investor share of appreciation.

Frequently Asked Questions

When does HEI beat HELOC?

Low-appreciation markets and short holds. If appreciation runs 2-3%, HEI is often cheaper than HELOC servicing over 10 years. In 6%+ appreciation markets, HELOC wins easily.

Are HEI payments tax-deductible?

No — HEI payback at exit is treated as a sale of an equity interest, not interest expense. No ongoing tax deduction. Compare after-tax HELOC interest (if deductible for acquisition use) against the HEI.

Can I have both?

Typically no — most HEI products require first-lien position behind the primary mortgage. Usually can't have HEI and HELOC simultaneously unless HEI contract permits. Read the fine print.

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