What will a home equity investment cost you?
There's no monthly payment, so the price hides until you settle. Model the buyout here. See the company's share, your total settlement, and the yearly rate it works out to.
Model the buyout
Illustrative — a simplified appreciation-share model, not an offerHow this is calculated
We grow your home's value by the appreciation rate over the term. The company's share is that percentage of the gain — the increase in value since you signed. Your settlement is the cash you took plus their share. The yearly rate is what that settlement works out to as an annual cost on the cash you received.
settle = cash + share% × (home value at end − home value now)
Real contracts vary: many use a discounted starting value that raises their share, add upfront fees, and cap the total. This model keeps it simple so you can see the shape of the cost. Run it with a higher appreciation rate to see how a rising market changes the deal.
The faster your home rises, the more the company's share grows. Push the appreciation slider up and watch the yearly rate climb past what a home-equity loan would charge.
See how an HEI stacks up against a HELOC, and who each one fits, on the home equity investment hub.