The short answer
- In our standard example ($750,000 home, $100,000 investment, 4% yearly growth, settled after 7 years), Unlock ranks 5 of 6 providers by yearly cost.
- You must settle within 10 years. Sign only if you're confident you'll sell, refinance, or buy it out by then.
- Settling early costs the most per year: about 22.6% a year if you settle at 3 years, versus 12.2% 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 Unlock offer costs
Example: $750,000 home, $300,000 still owed, $100,000 from Unlock, home growing 4% a year.
| Settle after | You receive | You repay | Total cost | Yearly cost |
|---|---|---|---|---|
| 3 years | $93,600 | $172,368* | $78,768 | 22.6% |
| 5 years | $93,600 | $243,331 | $149,731 | 21.1% |
| 10 years | $93,600 | $296,049 | $202,449 | 12.2% |
* Unlock’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 | $172,368 | $200,000 | $200,000 |
| 4% a year | $172,368 | $243,331 | $296,049 |
| 8% a year | $172,368 | $247,797 | $431,785 |
Your numbers will differ. Run yours in the Unlock calculator on HEI Calculator.
How Unlock works out what you owe
- How you repay: a share of your home's total value when you settle. The share is 2× the share of your home's value you received.
- Fee: 4.9% of the investment, taken from the cash you receive, plus third-party closing costs (we use $1,500).
- Cost cap: 19.9% a year, compounded yearly, on the investment. You never repay more than that.
- Term: settle within 10 years.
- Limits: $15,000 to $500,000; mortgage plus investment at most 70% of home value; home worth at least $175,000; credit score 500+.
Worth knowing: Unlock calls its multiplier an "exchange rate", often around 2.0; it varies by offer. The 19.9% cost cap comes from a third-party source; confirm it in your offer. Sources for every term: Unlock on HEI Calculator's provider terms page.
What to check in your Unlock offer
- The share you'll owe. Your offer should state the percentage of your home's value Unlock gets when you settle. With Unlock's published 2× multiplier, $100,000 on a $750,000 home works out to about 26.7% of your home's value. If your offer's percentage is higher, ask why.
- The home value they use. Your share is based on the appraised value. A lower appraisal than you expect means you give up a bigger share for the same cash.
- The fee, in dollars. Unlock's published fee is 4.9% of the investment, taken from your cash. On $100,000 that's $4,900, plus third-party costs such as the appraisal, title, and recording.
- The cost cap. Unlock publishes a cap of 19.9% 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. Unlock publishes a 10-year term. Check the settlement date in your offer and plan how you'll pay: at 4% growth that's about $296,049 in year 10, by selling or refinancing at whatever rates exist then.
- 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 Unlock before you sign
- What exact percentage of my home's value 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 Unlock 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 Unlock legit?
Unlock is a real home equity investment provider with published terms. For the full answer, read Is Unlock legit? on our sister site HEI Compare.
How much does a Unlock offer cost?
In our example at 4% yearly growth: about 22.6% a year if you settle at 3 years, 21.1% at 5 years, and 12.2% at 10 years. See the full Unlock review on HEI Compare.
Can I get out of a Unlock 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.