How does the Homeowner Protection Cap work?

The Homeowner Protection Cap puts a limit on how much you’ll owe Point—no matter how much your home increases in value. It’s a safeguard that helps ensure your repayment stays within a predetermined maximum amount, called the Capped Amount.

This cap is in place for the full 30-year term, but it's most likely to apply in the first five years. Why? Because Point starts calculating appreciation from a value below your home’s appraised value. That means:

• In the early years, your home may appear to have appreciated a lot.
• But much of that increase is actually just the difference between the lower starting value and your original valuation.
• The cap steps in to make sure you’re not overpaying based on that built-in jump.

The Capped Amount grows over time based on the amount of money you received from Point and a fixed annual rate, compounded monthly.

So even if your home’s market value skyrockets soon after you receive the investment, the cap ensures your repayment remains fair and predictable.