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Shared Equity Buyout Calculator
Shared equity products like Unison, Point, Unlock, and Hometap give homeowners cash in exchange for a share of future appreciation. Buying out of one before the 30-year term ends requires paying the investor their share of current value — often a large sum after appreciation. This calculator sizes the buyout and compares paths to fund it.
Total buyout owed
$93,050
Investor share of appreciation
$31,250
Total appreciation
$125,000
Cash-out refi capacity
$173,750
Cash needed beyond refi
$0
Origination fee
$1,800
How the math works
On $60K cash originally received against a $400K home at a 25% investor appreciation share, with current value $525K: appreciation is $125K, investor share is $31,250, plus original $60K cash back plus ~$1,800 origination fee = $93,050 total buyout. At 75% max cash-out LTV on $525K ($394K) with $220K existing mortgage, refi capacity is $174K — plenty to cover the $93K buyout with $81K left over.
Shared equity buyouts get painful only in high-appreciation markets where the investor share compounds fast. At 40% appreciation with a 35% share, the investor's take can exceed their original cash, making the effective APR 12-18%+. Run this calculator annually to track the implied cost of the agreement so you can exit optimally.
How to Use
- Enter the amount of cash originally received, original home value, and current home value.
- Set the investor's share of appreciation (typically 17.5-35%) and any origination fee or reduction.
- See the buyout amount, appreciation captured, and minimum cash-out refi LTV needed to fund it.
Frequently Asked Questions
How does shared equity work?
You receive cash (typically 5-17% of home value) upfront. In exchange, the provider gets a share of future appreciation (typically 17.5-35%) when you sell or buy out. No monthly payments. The provider's share usually caps at 2-3x the original cash. Unison has a 30-year max term; Point 10-30 years; Hometap 10 years.
What's the catch?
If the home appreciates strongly, the investor share can vastly exceed the cash they gave you. $100K cash on a $400K home (25%) with a 35% appreciation share: if the home reaches $550K, they get 35% of $150K = $52.5K on top of their $100K back = $152.5K for a $100K advance, effective ~8-10% annual return to them.
Is paying it off early a good idea?
Depends on alternative cash cost. If cash-out refi rate is lower than your implied cost, refi and pay off the investor. If rates have risen and your mortgage is old-low-rate, keeping the agreement might be cheaper than trashing a 3% mortgage to take a 7% cash-out.
What if the home depreciated?
Most agreements have a 'shared downside' component — investor loses some of their principal proportional to the decline. But there's usually a floor (e.g., 100% of cash is protected). Read your specific agreement; downside sharing varies widely.
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