The short answer
- In our standard example ($750,000 home, $100,000 investment, 4% yearly growth, settled after 7 years), Point ranks 3 of 6 providers by yearly cost.
- You have up to 30 years to settle, so it can fit a longer stay than the 10-year providers.
- Settling early costs the most per year: about 20.2% a year if you settle at 3 years, versus 11.5% at 10 years.
- If you qualify for a HELOC or home equity loan and can carry the monthly payment, it usually costs less per year than any HEI in our example. Compare every way to get cash.
What a Point offer costs
Example: $750,000 home, $300,000 still owed, $100,000 from Point, home growing 4% a year.
| Settle after | You receive | You repay | Total cost | Yearly cost |
|---|---|---|---|---|
| 3 years | $94,600 | $164,303* | $69,703 | 20.2% |
| 5 years | $94,600 | $216,797 | $122,197 | 18.0% |
| 10 years | $94,600 | $280,059 | $185,459 | 11.5% |
* Point’s cost cap sets the amount.
What you'd repay as home prices change
| If your home grows | Settle at 3 years | 5 years | 10 years |
|---|---|---|---|
| 0% a year | $164,303 | $164,800 | $164,800 |
| 4% a year | $164,303 | $216,797 | $280,059 |
| 8% a year | $164,303 | $228,776 | $442,942 |
Your numbers will differ. Run yours in the Point calculator on HEI Calculator.
How Point works out what you owe
- How you repay: the investment back, plus 2.4× your share of the change in value above a starting value set 27% below today's value.
- Fee: 3.9% of the investment, minimum $2,000, taken from the cash you receive, plus third-party closing costs (we use $1,500).
- Cost cap: 18% a year, compounded yearly, on the investment. You never repay more than that.
- Term: settle within 30 years.
- Limits: $30,000 to $600,000; mortgage plus investment under 80% of home value (our assumption; not published); home worth at least $155,000; credit score 500+.
Worth knowing: Point's fee is "up to" 3.9% with a $2,000 minimum; we use the full 3.9%. Point publishes no limit on its share of home value or on leverage, so we assume your mortgage plus the investment must stay under 80% of your home's value. Sources for every term: Point on HEI Calculator's provider terms page.
What to check in your Point offer
- The starting value. Point shares in the gain above a starting value set 27% below today's value. On a $750,000 home that's $547,500, so $202,500 counts as gain before your home grows at all. Check the starting value in your offer.
- The share of the gain. At 2.4×, $100,000 on a $750,000 home means Point gets about 32.0% of the gain above the starting value, plus the $100,000 back. Your offer should state this percentage.
- The appraisal. The starting value comes from the appraised value, so a lower appraisal than you expect lowers the starting value and raises what you'll owe.
- The fee, in dollars. Point's published fee is 3.9% of the investment, at least $2,000, taken from your cash. On $100,000 that's $3,900, plus third-party costs such as the appraisal, title, and recording.
- The cost cap. Point publishes a cap of 18% a year on the investment. Make sure your offer states the cap and how it's calculated; in our example it sets what you'd repay if you settle at 3 years.
- The deadline. Point publishes a 30-year term. Check the settlement date in your offer and plan how you'll pay.
- What makes it due early. Check which events make the full amount due, such as selling, refinancing, transferring the home, or a default.
- Buying out early. Check how you can pay it off before you sell, whether there's a minimum period, and how your home's value is set at buyout.
- Your duties as owner. Read what the contract requires for upkeep, insurance, and property taxes, and what happens if you fall behind.
More on each of these in our guide to HEI contract red flags.
Questions to ask Point before you sign
- What exact percentage of my home's gain will I owe, and what home value is it based on?
- How much will I receive after every fee, in dollars?
- What would I owe if I settle in year 3, year 5, and year 10, at 0% and 4% growth?
- Is there a cost cap, and how exactly is it calculated?
- How do I buy out early, and who chooses the appraiser?
- Do improvements I pay for count in my favor when we settle?
Have a person review your Point offer
Send us your written offer. We'll check every term above, show your true cost at 3, 5, and 10 years, compare it with the other providers and a HELOC, and walk you through it on a 45-minute call. Offer Review, $249.
Questions
Is Point legit?
Point is a real home equity investment provider with published terms. For the full answer, read Is Point legit? on our sister site HEI Compare.
How much does a Point offer cost?
In our example at 4% yearly growth: about 20.2% a year if you settle at 3 years, 18.0% at 5 years, and 11.5% at 10 years. See the full Point review on HEI Compare.
Can I get out of a Point agreement early?
Yes. You can settle before the deadline by selling, refinancing, or buying it out with cash. You pay what's owed at that point, and settling early costs the most per year.
Do Illinois and Maine require counseling first?
Yes. Both states require counseling before you sign an HEI. See what that means in Illinois and Maine.