What is APR or Equivalent APR for a Home Equity Investment?

Our Home Equity Investment doesn't have an interest rate and there are no monthly payments. Instead, your estimated repayment amount is based on the appreciation or depreciation of your home’s value.

We use Equivalent Annual Percentage Rates (APRs) to help you compare our HEI to other equity products like HELOCs or cash-out refinances.

The Equivalent APR shown in your estimates and the cost estimator reflects how your repayment could compare to borrowing money at an interest rate. It doesn't represent interest you are paying to Point and is used only to represent the effective cost of the HEI. Your actual Equivalent APR and repayment amount may be less if any state laws apply.

The APR is just a comparison tool — it does not affect how much you owe or how your HEI works. We use Appendix J to Part 1026 of the Truth in Lending Act to calculate Equivalent APR.