Point vs Unison vs Hometap HEI Honest Comparison

Point vs. Unison vs. Hometap: The Real Cost of Equity Sharing

As interest rates for HELOCs and second mortgages remained stubbornly high through 2025, a new financial product gained massive traction in 2026: the Home Equity Investment (HEI). Companies like Point, Unison, and Hometap offer a seductive proposition: “Get cash now with no monthly payments and no interest.”

At Home Equity Scout, we have a saying: If something sounds too good to be true in the mortgage industry, it’s probably because you haven’t read the “share of appreciation” clause. HEIs are not loans; they are equity-sharing contracts. You are selling a piece of your home’s future value to an investor. While the “no monthly payment” feature is a lifeline for some, the long-term cost of these products can be far higher than even a double-digit interest rate. Here is an honest comparison of the major players and the math that drives them.

1. How HEIs Actually Work: The “Option” Math

When you “partner” with an HEI company, they give you a lump sum of cash—typically up to 10% or 15% of your home’s value. In exchange, they take a percentage of your home’s future value. You usually have 10 to 30 years to “buy them out” or sell the home to settle the contract.

The trap lies in the “risk adjustment.” If your home is worth $500,000, an HEI company won’t give you $50,000 for 10% of your equity. They apply a “downside adjustment” to your home’s current value. They might value your home at $450,000 for the purpose of the contract. This means you are already “down” 10% the moment you sign the paperwork. If your home appreciates, they get their original investment back plus a chunk of that growth. If your home value stays flat, they still get a fixed return or a larger slice of your remaining equity.

2. Point: The Flexible Player

Point is often cited for its flexibility. They are generally more willing to work with homeowners who have lower credit scores or higher debt-to-income ratios than traditional banks would allow.

Point’s contracts typically last 10 years. Because of this shorter window, the pressure to sell or refinance to pay them back comes sooner. Point also uses a “multiplier” on their equity share. For example, for every 1% of the home’s value they give you, they might take 2.5% of the future value. At Home Equity Scout, we find Point’s transparency to be decent, but the 10-year term is a ticking clock that many homeowners underestimate.

3. Unison: The Long-Term Partner

Unison is one of the oldest players in the space and tends to target homeowners with better credit profiles. Their contracts can last up to 30 years, mirroring a traditional mortgage.

Unison’s unique selling point is that they “share the loss” as well as the gain. If your home loses value, Unison technically loses money with you. However, because of the “risk adjustment” mentioned earlier (where they value your home lower than its actual market price at the start), the home has to lose a significant amount of value before Unison actually takes a hit. In 2026, with home prices largely stable, the “shared loss” feature is more of a marketing talking point than a likely outcome for most owners.

4. Hometap: The Fast-Mover

Hometap has grown rapidly by focusing on a streamlined, digital-first experience. They offer 10-year terms similar to Point. Their pricing is often based on a “cap” or a specific percentage of the home’s future value rather than a complex multiplier.

Hometap is often the choice for homeowners who need cash quickly for a specific project and have a clear “exit strategy” (like selling the home in five years). However, like Point, their 10-year term means you must be very certain about your ability to settle the debt. If you can’t refinance in 10 years because rates are still high or your credit has dipped, you may be forced to sell your home to pay Hometap back.

5. The Math: HEI vs. HELOC

Let’s look at the real-world math of 2026. Suppose you take $50,000 from an HEI on a $500,000 home. Your home appreciates at a modest 3% per year. In 10 years, your home is worth $672,000. Under a typical HEI contract, you might owe the company $120,000 to $150,000 to buy them out. That is an effective interest rate of 9% to 12%.

If you had taken a HELOC at 9% and made interest-only payments, you would have paid $45,000 in interest over 10 years and still owe the original $50,000. Your total cost: $95,000. The HEI cost you $150,000—a $55,000 “premium” for the privilege of not making monthly payments.

At Home Equity Scout, we find that the more your home appreciates, the worse the HEI deal becomes. You are effectively penalizing yourself for being a good homeowner in a good neighborhood.

6. The “Exit Trap” and Appraisal Friction

The biggest headache with HEIs isn’t the start; it’s the end. When you want to buy out Point, Unison, or Hometap, you have to agree on a new appraisal.

In 2026, we are seeing increasing reports of “appraisal friction.” The HEI company has every incentive to see a high appraisal (so they get more money), while the homeowner wants a low one. Most contracts allow for a third-party “tie-breaker” appraisal, but the costs of these disputes fall on the homeowner. Furthermore, the fees to close an HEI—often 3% to 5% upfront—are deducted from your cash lump sum, meaning you pay for the privilege of giving away your equity.

The Home Equity Scout Conclusion

HEIs are a tool of last resort, not a primary financial strategy. If you are “house rich and cash poor,” have no ability to make monthly payments, and have a guaranteed way to pay the money back in 10 years, an HEI can work.

But for the vast majority of homeowners, the cost of “no monthly payments” is simply too high. You are selling your most valuable asset’s future growth to a venture-backed corporation. Before you sign with Point, Unison, or Hometap, do the math on 4% annual appreciation. If you realize you’re paying the equivalent of a 15% interest rate, you might find that a “boring” high-interest HELOC is actually the cheaper option. Protect your equity—it’s the only thing that builds true wealth over time. Don’t trade it for a temporary convenience.