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