A New Way to Access Your Home Equity Without Selling or Refinancing

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Imagine you need cash for a renovation, to pay off high-interest bills, or to jump on a business opportunity, but you don’t want a new monthly payment. That’s where a Home Equity Investment comes in. Instead of borrowing from a bank, you as a homeowner can partner with an investor who gives you cash today in exchange for a share of your home’s future value.

At the end of the investment term, or when you decide to repurchase the state or sell your home, you’ll pay an agreed-upon percentage of your home’s current market value.

Here’s the play-by-play of how HEI’s generally work.

1. Prequalify in minutes. Find out if you prequalify in minutes by sharing a few details about your home—address, rough equity estimate, that kind of thing—and the investor gives you an investment estimate, which shows how much cash you might be eligible to receive.

2. Apply - If it’s a mutual fit and you decide to move forward, you fill out a quick and easy online Application.

3. Agree on terms. Together you agree on the specific share of your home’s future value they’ll get, and how long the agreement lasts.

4. Get cash in hand. Once the paperwork’s signed, you usually see funds in your account in a few business days.

5. Settle up later. When you sell your home, refinance, or hit the end of your term, you pay the investor their agreed-upon share based on what your home is worth then.

No monthly payments. Just one final settlement payment when the time comes. You can settle through a home sale, refinance, home equity (or other) loan, or savings.

How is an HEI different from an HEA or HELOC?

If you're sitting on valuable home equity and trying to figure out an alternative way to tap into it that doesn’t include selling your home or taking on monthly payments, you're not alone. The options below may sound similar but operate in very different ways. Whether you're trying to avoid taking on monthly payments, need flexibility, or want to use your equity to fund your next big goal, this comparison may help you make a confident decision.

First, what do these terms even mean? Let’s break them down in plain terms:

• HEI (Home Equity Investment) or HEA (Home Equity Agreement): This is an equity-sharing investment or agreement. You get cash now in exchange for a share of your home’s future value or your home’s appreciation, depending on which company you choose. Instead of monthly payments, you’ll make one lump sum payment at the end of the term, or when you decide to sell your home. HEIs/HEAs use a cash-now, share-later model.

• HELOC (Home Equity Line of Credit): A revolving line of credit secured by your home. Think of it like a credit card with your house as collateral. You borrow what you need, pay interest monthly, and can reuse the line as you repay it.

Here’s how they compare, side-by-side:

HEIs/HEAs are great if you need liquidity without taking on monthly payments. You don’t pay monthly, but you do give up some future equity. HELOCs are ideal if you want flexible access to funds and don’t mind making monthly payments.

This decision isn’t just about dollars, it’s about direction. If you're navigating big financial goals like buying your next property, starting a business, or freeing up cash flow during tough times, choosing the right equity tool that’s best for your individual situation could help shape your next chapter.

Meet Hometap: Your HEI Partner

Hometap launched in 2017 with a simple mission: help homeowners tap into their equity without monthly payments or hidden fees. They’ve funded thousands of homeowners across the U.S., offering:

• Transparent equity offers. Pre-qualify in a couple minutes to see how much cash you may be eligible to receive and what percentage you share. This means no guesswork, you choose exactly how much equity to tap, and Hometap shows you the investor percentage right away.

• Personalized support. Your dedicated Investment Manager walks you through each step. They ensure you understand every detail about your pricing and your contract; no financial jargon, no pressure, just clear answers and guidance.

• Real-time home equity dashboard. Track your home’s value, your equity, and your investment details online. This keeps you in control: watch your home’s value evolve, check your remaining equity, and know when your settlement date approaches.You’ll even have access to Hometap’s Financial Health Hub, personalized, dynamic insights about your home, maintenance tips, homeownership articles and home-related partner offers.

• No surprises. Zero monthly bills, no hidden fees.

If you’re comfortable sharing a piece of your home’s future value and want cash now, without additional monthly payments, a HEI could be a great solution. And if you value transparency, personal support, homeowner resources and tech-savvy equity tracking, Hometap checks all the boxes.

Take two minutes to see what you may pre-qualify for with Hometap. No pressure and no obligation, just clarity on how much cash you could have pressing into your plans.

Stay Financially Healthy!

DISCLAIMER: This post is for informational purposes only and does not constitute financial, legal, or tax advice. Home Equity Investments (HEIs), including those offered by Hometap, are not suitable for everyone. Before making any financial decisions, you should consult with a licensed financial advisor, attorney, or tax professional to determine what’s best for your unique situation.