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

Our 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. Our HEI is 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 our 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. Our HEI doesn't—your existing mortgage can remain in place.

• Appreciation-based repayment. Reverse mortgages charge a set interest rate that compounds over time. With our HEI, you agree to share a portion of your home’s future value when you sell, refinance, or repay.

• You can’t owe more than your home’s value: With a reverse mortgage, the entire equity of the home could be owed to settle the loan balance. If your home value drops below the Appreciation Starting Value, Point shares in the loss, our way of striving to preserve your share of home equity.

• 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 property.