Home equity investment · California · Transparent pricing

How HEI pricing works

An HEI has no monthly payments and no interest rate — instead, an investor receives an agreed share of your home’s future value. Here’s exactly what sets your cost, in plain English.

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A California homeowner relaxing at home while reviewing her Home Equity Investment on her phone
The Big Idea

Cash today for a share of tomorrow’s value

With a traditional loan, you borrow a dollar amount and repay it — plus interest — a little every month. A Home Equity Investment works differently. You receive a lump sum today, and in return an investor receives an agreed share of your home’s value in the future.

Because you’re not borrowing, there’s no interest rate and no monthly payment. Nothing is due until you settle — any time within a term of 10 to 30 years.

  • check_circleNo interest accrues on the money you receive
  • check_circleNo monthly payments — you settle once, later
  • check_circleThe investor shares the downside if your home’s value falls
What Sets Your Cost

The four inputs behind every HEI price

There’s no rate sheet to decode. Your cost comes down to four straightforward numbers.

1

Your home’s value today

An appraisal sets your home’s current market value — the starting point for everything else. Eligible homes are valued between $200,000 and $5,000,000.

2

The amount you take

You choose how much cash to access, up to 25% of your home’s value or $500,000, whichever is less. The more you take, the larger the share you exchange.

3

The investor’s share

In exchange for cash with no payments, the investor receives an agreed percentage of your home’s future value. A modest risk adjustment sets the starting value below today’s appraisal, which is how the investor can skip monthly payments and share your downside.

4

Your home’s value at settlement

When you settle, the investor’s share is applied to your home’s value at that time. If your home has appreciated, the amount is higher; if it has declined, the amount is lower.

A Worked Example

See it with real numbers

A simplified illustration to show how the pieces fit together. Your actual offer will differ — the calculator gives figures for your home.

Home value today

$850,000

Cash you receive

$85,000

10% of value

Investor’s share

20%

of future value

If your home appreciates

Home value in year 8
$1,100,000
Investor’s 20% share
$220,000
You settle for
$220,000

You keep the other 80% of your home’s gains — and made no payments along the way.

If your home declines

Home value in year 8
$780,000
Investor’s 20% share
$156,000
You settle for
$156,000

Because the investor owns a share of value, they share the loss — so you owe less than in an up market.

Illustration only. Figures are simplified and exclude closing costs and any risk-adjustment or repurchase-cap terms. Your agreement governs. Speak with your advisor for numbers specific to your home.

Paying It Back

Three ways to settle

You settle the investment once, any time within your 10-to-30-year term. Settlement is required at the end of the term or when you sell or refinance, and the agreement is secured by a recorded lien on your home.

sell

Sell the home

The investor’s share is settled from the sale proceeds at closing — nothing out of pocket.

autorenew

Refinance

Roll the settlement into a new loan and keep your home, if the numbers work for you.

savings

Buy it out

Settle from savings or other funds any time within the term — there’s no prepayment penalty.

What To Expect

Costs at closing

payments

A one-time origination fee

Deducted from your funds at closing, so there’s nothing to pay up front.

home_work

Third-party costs

Appraisal, title, and escrow — the standard costs of documenting any home transaction.

block

No monthly payments

Between closing and settlement there is nothing to pay and no interest to accrue.

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Shopped for you

We work with a leading HEI investor and negotiate competitive terms on your behalf.

Pricing Questions

Answers to the common ones

Is a Home Equity Investment a loan?
No. An HEI is not a loan. Instead of borrowing money and repaying it with interest, you receive cash today in exchange for a share of your home’s future value. Because it’s not a loan, there’s no interest rate and no monthly payment. You settle the investment once, later, when you sell, refinance, or choose to buy it out.
How is the cost of an HEI calculated?
Your cost is driven by four inputs: your home’s appraised value today, the amount of cash you take, the agreed share of your home’s future value the investor receives, and how much your home is worth when you settle. Because the investor’s share is applied to your home’s value at settlement, the final amount rises if your home appreciates and falls if it declines.
Are there monthly payments or interest?
No. An HEI has no monthly payments and charges no interest. Nothing is due until you settle the investment, which can be any time within a term of 10 to 30 years.
How do I pay it back?
You settle the investment in one payment when it’s convenient for you, any time within the term. Most homeowners settle by selling the home, refinancing, or buying out the investment from savings. When you settle, the investor is repaid its agreed share of your home’s value at that time.
What if my home loses value?
Because the investor owns a share of your home’s future value, the investor shares the downside too. If your home is worth less when you settle, the amount you owe is calculated on that lower value, so you may repay less than an appreciation-based estimate. Exact terms vary by offer, so review your agreement with your advisor.

See your actual numbers

Estimate what you could access and what it would cost in about a minute — no income, no employment, and no monthly payments. Checking is free and won’t affect your credit score.

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