How is a Home Equity Investment different from a reverse mortgage?

A Home Equity Investment (HEI) offers some of the same benefits as a reverse mortgage—like no monthly payments—but with more flexibility and fewer restrictions. Key differences include:

• No age requirement: Reverse mortgages are limited to homeowners 62 and older. HEIs are available to qualified homeowners regardless of age.
• No penalty for a lump sum: With a reverse mortgage, taking a large upfront amount often results in higher costs. With an HEI, you receive your funds as a lump sum with no penalty.
• No need to pay off your mortgage: Reverse mortgages require you to use the funds to pay off any existing mortgage. HEIs do not—your existing mortgage can remain in place.
• No interest charges: HEIs don’t charge interest. Instead, Point receives a share of your home’s future appreciation. Reverse mortgages charge interest that compounds over time.
• You can’t owe more than your home’s value: If your home value declines below the Appreciation Starting Value, your repayment amount will decrease. You’ll never owe more than the value of your home at sale or refinance.
• Transferability to heirs: Unlike a reverse mortgage, which typically becomes due upon death, a Point HEI can be transferred to your heirs if they assume the agreement.