Finance category
Mortgage, loan, investing, tax, and money calculators.
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.
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
- Enter home value and amount needed.
- Enter current HELOC rate for comparison.
- Enter assumed appreciation rate — the biggest variable.
- Enter years until sale or buyout.
- 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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