Provider review

Hometap review: terms, real cost, pros and cons

Hometap takes a share of your home's total value when you settle, with a 10-year term, access to up to 27% of your home's value, and a cap on its annual return.

At a glance

What they call itHome Equity Investment
How you repayShare of your home's total value at settlement
Cash available$15K to $600K
Max share of home value27%
Equity you must keep25% after funding
FeeUp to 4.5% Fee from a third-party review
Cost cap18.5% a year, compounded monthly
Term10 years
Minimum credit score585
Shares losses if value fallsYes, you owe a share of a lower value

How Hometap's agreement works

Hometap invests a percentage of your home's value. At settlement it receives a larger percentage of whatever your home is worth then.

In Hometap's published example for a 10% investment, that share is 16.5% if you settle in years 1 to 5 and 18% in years 6 to 10, multipliers of 1.65 and 1.8.

Hometap's return is capped at 18.5% a year, compounded monthly.

You can access up to 27% of your home's value and need at least 25% equity. The investment has to be settled within 10 years, through a sale, refinance, or buyout.

What Hometap costs

Effective annual cost for $100,000 against a $750,000 home with a $300,000 mortgage. Rows are yearly home appreciation; columns are when you settle.

Growth3 years5 years7 years10 years
0% a year20.6%11.9%9.7%6.7%
2% a year22.7%14.1%11.9%8.8%
4% a year22.7%16.4%14.1%11.0%
6% a year22.7%18.6%16.3%13.1%
8% a year22.7%20.9%18.5%15.2%

* Hometap's agreement must be settled within 10 years, so longer holds are shown at year 10. Example: at 4% growth over 7 years you would net $94,000 after fees and settle for $236,868, an effective cost of 14.1% a year. Open this example in the calculator.

Pros and cons

Pros

  • Up to 27% of your home's value, the highest published limit we've seen
  • Return capped at 18.5% a year
  • A lower multiplier if you settle within five years
  • Up to $600,000

Cons

  • A 10-year term can force a sale or refinance at an awkward time
  • Share-of-value structure means you owe more than you received even if your home doesn't appreciate
  • Fee (4.5% per LendEDU) isn't stated on the Hometap pages we reviewed

Who Hometap fits

Worth a look if: You need a larger amount relative to your home's value and expect to settle within 10 years.

Look elsewhere if: You want 20 or 30 years before you have to settle.

Compare Hometap

Sources

Hometap: how it works · Hometap: how pricing works · LendEDU: provider comparison

Terms verified September 23, 2026. Full terms and sources for every provider: HEI Calculator provider terms.

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