The short answer
In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, settled after 7 years), Hometap costs 14.1% a year versus 14.3% for Point.
Point is cheaper below about 3.6% annual growth, Hometap between 3.6% and 8.5%, and Point again above 8.5%, where its cost cap takes over (settling after 7 years).
Settle within 3 years and Point is cheaper; hold for 10 and Hometap is.
Side by side
| Point | Hometap | |
|---|---|---|
| What they call it | Home Equity Investment (HEI) | Home Equity Investment |
| How you repay | Share of your home's gain, measured from a starting value set below your appraisal | Share of your home's total value at settlement |
| Cash available | $30K to $600K | $15K to $600K |
| Max share of home value | Not published | 27% |
| Equity you must keep | Not published | 25% after funding |
| Fee | Up to 3.9% (minimum $2,000) | Up to 4.5% Fee from a third-party review |
| Cost cap | 18% a year | 18.5% a year, compounded monthly |
| Term | Up to 30 years | 10 years |
| Minimum credit score | 500 | 585 |
| Shares losses if value falls | Yes, below the starting value | Yes, you owe a share of a lower value |
Full reviews: Point · Hometap. Sources for every term.
Cost at different growth rates and timelines
Effective annual cost for $100,000 against a $750,000 home with a $300,000 mortgage. The cheaper of the two is highlighted.
| Growth | 3 years | 7 years | 10 years | |||
|---|---|---|---|---|---|---|
| Point | Hometap | Point | Hometap | Point | Hometap | |
| 0% a year | 20.2% | 20.6% | 8.3% | 9.7% | 5.7% | 6.7% |
| 2% a year | 20.2% | 22.7% | 11.3% | 11.9% | 8.7% | 8.8% |
| 4% a year | 20.2% | 22.7% | 14.3% | 14.1% | 11.5% | 11.0% |
| 6% a year | 20.2% | 22.7% | 17.1% | 16.3% | 14.1% | 13.1% |
| 8% a year | 20.2% | 22.7% | 18.9% | 18.5% | 16.7% | 15.2% |
Ten-year agreements are shown at year 10 when you'd hold longer. Open this example in the calculator.
Key differences
- How you repay: Point: share of your home's gain, measured from a starting value set below your appraisal. Hometap: share of your home's total value at settlement.
- Time to settle: Point up to 30 years; Hometap 10 years.
- Cost cap: Point 18% a year; Hometap 18.5% a year, compounded monthly.
- Starting value: Point measures gain from 27% below your appraisal.
- How much you can take: Point doesn't publish a limit; Hometap up to 27% of your home's value.
- Credit: Point minimum 500; Hometap minimum 585.
Which fits you
- Your home may not appreciate much: Point (8.3% vs 9.7% at 0% over 7 years).
- You expect strong growth: Hometap (18.5% vs 18.9% at 8% over 7 years).
- You might settle within 3 years: Point (20.2% vs 22.7%).
- You need more than 10 years: Point, which allows up to 30 years.
Questions
Is Point or Hometap cheaper?
In our standard example ($100,000 against a $750,000 home with a $300,000 mortgage, 4% growth, 7 years), Hometap costs 14.1% a year versus 14.3% for Point. Point is cheaper below about 3.6% annual growth, Hometap between 3.6% and 8.5%, and Point again above 8.5%, where its cost cap takes over (settling after 7 years).
Which is better if I settle early, Point or Hometap?
Settling after 3 years at 4% growth, Point costs 20.2% a year versus 22.7%.
More comparisons
Run your own numbers
Every figure here uses a standard example. The calculator runs your home, your mortgage, and your assumptions through every provider at once.
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