The Word: Equity. It’s the difference between your home’s current market value and what you still owe on your mortgage. Want to make it grow? From making home improvements to simply paying your mortgage each month, you’re building value over time.
You likely already know that you can tap into this equity to help cover expenses, like debt consolidation, education costs, medical bills, or even retirement. Here are a few options:
- HELOC (Home Equity Line of Credit): Borrow against equity as needed, with flexible access over time and a variable interest rate.
- Home Equity Loans: Receive a one-time sum with a fixed interest rate, usually repaid over five to 30 years.
- Equity Sharing Home Loans: Offers borrowers a fixed-rate, interest-only loan, with lower monthly payments than a traditional loan. In exchange, you agree to share a portion of your home’s future value appreciation.
How do Equity Sharing Home Loans work?
One of the biggest advantages to an Equity Sharing Home Loan is the lower monthly payments thanks to the below-market interest rate. But how, exactly, do they work?
Lenders that offer these types of loans, like Unison, provide homeowners with an up-front cash payment in exchange for an option to share in the home’s future change in value. This allows borrowers to access the equity in their home at a below-market interest rate.
From “What happens if I make home improvements?” to “Can I refinance in the future?” Unison’s FAQ page is chock-full of answers.
Interested
See how much you could be eligible for — and how low your payment could be.
Unison Mortgage Corp NMLS ID 2574289