Why does appreciation start at a value lower than what my home is appraised for?

Point uses a lower number—called the Appreciation Starting Value—instead of your full appraised value to help offset the risk Point takes on by not requiring monthly payments.

This approach gives Point a cushion in case your home doesn’t appreciate as expected, and it opens the door for us to share in losses—not just gains. If your home’s value drops below the Appreciation Starting Value, your repayment amount may actually be less than what you received from us. That’s a key difference from loans or other financing options: Point shares in both the upsides and the downsides.

This structure also helps explain why the Homeowner Protection Cap often comes into play in the early years. Since appreciation is measured from a number below your appraised value, it can appear that your home has appreciated more than it truly has—especially in the first few years. The cap helps keep your repayment fair during that period.