Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Home Equity Home Equity Investments Point vs. Unlock: Home Equity Sharing Comparison Updated May 01, 2024 9-min read Written by Sarah Sheehan, MAT Written by Sarah Sheehan, MAT Expertise: Tax planning, retirement planning, debt management Sarah Sheehan is a writer, educator, and analyst who focuses on the impact of health, gender, and geography on financial equity. Her ultimate goal? To live beyond the confines of chasing the next dollar—and to teach everyone else how to do the same. Learn more about Sarah Sheehan, MAT If you’re considering a home equity share agreement, finding the right company is paramount. Selling a portion of your home’s future value to investors is no small matter. To help you compare your options, we’re breaking down the differences between two of the top home equity sharing companies, Point and Unlock. Keep reading for an unbiased critique of what each company has to offer so you can select the best fit. Table of Contents Skip to Section Point vs. Unlock at a glanceHow does Point work?How does Unlock work?Unlock vs. Point eligibilityWhat customers say about Unlock and PointWhich is better—Unlock or Point? Point vs. Unlock at a glance 4.4 Free quote 4.7 Free quote Min. credit score 500 500 Min. credit score Min. credit score 500 500 Investment amount $25,000 – $500,000 $30,000 – $500,000 Investment amount Investment amount $25,000 – $500,000 $30,000 – $500,000 Term length 30 years 10 years Term length Term length 30 years 10 years Fees Up to 3.9% processing fee Up to 4.9% origination fee Fees Fees Up to 3.9% processing fee Up to 4.9% origination fee State availability 24 states (listed below) 14 states (listed below) State availability State availability 24 states (listed below) 14 states (listed below) See the best home equity investments. Neither Point nor Unlock requires homeowners to have perfect credit or high incomes. Each company offers a similar investment range, topping out at $500,000. Where we start to see these competitors deviate is in their term lengths. Point gives you 30 years to sell your home or buy back your equity, while Unlock gives you just 10 years. Both companies charge appraisal, inspection, and title fees, but their fee structures vary. Point charges processing fees up to 3.9%, and Unlock assesses origination fees up to 4.9%. Point is more widely available, in 24 states versus Unlock’s 14, but both are available in Arizona, California, Colorado, Florida, Michigan, New Jersey, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, and Washington. How does Point work? Established in 2015, Point’s founding team sought to innovate home equity financing. Since then, Point has helped more than 10,000 homeowners make better use of their equity—not through lending but through investing. With Point, you can get an investment offer within 60 seconds. After completing the application and appraisal, Point will transfer your payment to your bank account—less appraisal and transaction costs and the 3.9% processing fee. Once you get your money, you’ll have up to 30 years to buy back your equity, but you won’t owe monthly payments. How much you’ll pay depends primarily on your home’s value at the time of repurchase but also on three additional factors: Homeowner protection cap: Point implements a cap to keep your repurchase amount under control should your home’s value appreciate exponentially.Appreciation Starting Value: Point adjusts your home’s value by 29% to safeguard its investment in the event your home depreciates.Share of appreciation: This is how much of your home’s change in value you’ll share with Point. Don’t worry if this sounds complex—Point will work with you to ensure you understand how your initial investment and eventual buyback are calculated. It will also help you develop a repurchase strategy that makes sense for your finances. For more about Point’s home equity investment, check out our full review. How does Unlock work? California-based Unlock joined the home equity investment market in 2020. Rather than simply giving homeowners an alternative to traditional home equity financing, Unlock upended home equity share agreements by allowing customers to make partial payments. You can get an estimate from Unlock in about two minutes. If you decide to apply, an Unlock home equity consultant will guide you through the rest of the process, from appraisal to funding. Unlock should wire your payment a few days after you sign your investment agreement. It will deduct an origination fee of up to 4.9%, plus expenses, including appraisal and title fees, from your funds. You’ll then have 10 years to buy out Unlock. You can do so one of two ways: Full buyout: You repurchase your equity with a lump-sum payment, and Unlock no longer has a stake in your home.Partial buyout: You buy back a percentage of Unlock’s share now and buy back the rest before the end of your 10-year term. Each buyout option is subject to a $500 processing fee. Still, the ability to buy back your equity gradually instead of all at once gives you more control over your home equity share agreement—and your finances. Read our full Unlock review for a deeper dive into its home equity investment agreement. Unlock vs. Point eligibility Unlock and Point have similar eligibility requirements, including low minimum credit scores and a high maximum loan-to-value ratio (LTV), but starting home values differ. The table below shows a quick summary of the qualification criteria for Point and Unlock: PointUnlockMin. credit score500500Min. home value$250,000$175,000Max. LTV80%80%Property typesSingle family homes, condos, multi families w/ 2-4 units, town homesSingle family homes, condos, multi families w/ 2-4 units, town homesMobile / mfg?❌❌Non-owner-occupied?✅✅Addtl. reqs.No bankruptcies in last 7 yearsNo bankruptcies, foreclosure action, or short sales in last 5 years The eligibility requirements listed here aren’t exhaustive. Each company also considers: Your income: You’ll need to demonstrate that you can handle your mortgage and other debt obligations while preparing for the equity buyout at the end of your term.Your case’s complexity: The simpler and more straightforward your homeownership situation, the better. Inability to gain spousal consent, multiple liens on the home, or even a contested inheritance could all jeopardize your application. If you’re not sure whether you qualify for a Point or Unlock home equity investment, you can always prequalify on each company’s website. Getting estimates doesn’t hurt your credit score, and it can give you greater insight into your options. Where are Unlock and Point available? Your eligibility for either an Unlock or Point home equity share agreement depends in part on where you live. As of April 2024, Unlock and Point are available in the following states: Unlock: Arizona, California, Colorado, Florida, Michigan, New Jersey, North Carolina, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, and WashingtonPoint: Arizona, California, Colorado, Connecticut, Florida, Hawaii, Illinois, Indiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, New Jersey, New York, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, Washington, and Washington, D.C. So both products are available in 13 states: Arizona, California, Colorado, Florida, Michigan, New Jersey, Oregon, Pennsylvania, South Carolina, Tennessee, Utah, Virginia, and Washington. What customers say about Unlock and Point Point and Unlock hold A+ ratings and accreditation with the Better Business Bureau (BBB). To become accredited, businesses must demonstrate a commitment to ethical practices, including protecting customer data and maintaining proper licensure. But accreditation doesn’t mean 100% customer satisfaction, as you can see in the disparity between each company’s BBB reviews: Point UnlockBetter Business Bureau4.23/5 stars3.96/5 starsTrustpilot4.5/5 stars4.7/5 stars Most of Unlock’s lower BBB reviews stem from what appear to be unusual homeownership circumstances rather than the typical HEA situation. To its credit, Unlock responds to these critical reviews with additional details, which can help provide context for would-be clients. Positive Unlock reviews across BBB and Trustpilot speak to the company’s fast funding times, while a common thread in Point’s reviews is how lengthy its funding process can be. Satisfied and dissatisfied customers alike mention how long they waited to receive their money, with some noting that calls and emails aren’t always returned promptly. Despite communication delays, many clients remark that Point’s representatives are thorough and helpful. Which is better—Unlock or Point? Unlock and Point’s products are similar enough that the right candidate can’t go wrong with either. As of April 2024, both companies are available in 13 states. If you’re a homeowner in one of these 13 states, it may make more sense to choose one over the other in certain scenarios: If you want…Choose…A longer termPointMore buyout flexibilityUnlockTo minimize costsPointA company with more experiencePointMore upfront transparencyUnlock You might already know which home equity sharing company you’ll choose, but in case you’re still debating, we’ll dive into these factors in more detail. Term length Point offers a much longer term than Unlock—30 years compared to 10, respectively. Those two extra decades could prove invaluable if you don’t intend to sell your home and need to save up for a buyout. But with Point, what you’ll gain in time you’ll lose in flexibility. Winner Point Buyout options Unlock allows for partial buybacks. You can repurchase your equity in increments throughout your loan, rather than paying a massive lump sum when your 10 years is up. Winner Unlock Fees and costs What you’ll pay to end your home equity sharing agreement isn’t the only cost to consider. Here’s a quick look at how much Point’s 3.9% processing fee would run on a $250,000 investment, compared to Unlock’s 4.9% origination fee: Investment amount$250,000Point’s processing fee$9,750Unlock’s origination fee$12,250 You won’t necessarily have to pay that out of pocket. Instead, these fees will reduce the cash you receive. Weigh the amount of money you need against each company’s fees and benefits. Winner Point Experience You’ll also want to consider each company’s longevity and trustworthiness. Point has been around longer than Unlock, and its track record may provide more peace of mind than you’d get with a newcomer. Winner Point Transparency Point’s website isn’t exactly forthcoming, which makes it harder for homeowners to find the facts they need to make an informed decision. Unlock—with a robust FAQ section and an easy-to-read list of conditions and restrictions at the bottom of each page—doesn’t hold back. You might be willing to work with a less experienced company if it means greater transparency at the outset. Winner Unlock What to do if you can’t decide between Point and Unlock We recommend basing your decision on your priorities, goals, location, and resources. If both companies align well with your needs, get quotes from each one so you can compare equity investment offers personalized to you. Once you have those offers in hand, you can better evaluate whether Point or Unlock is the right choice. And if you’re still unsure whether one of these companies is right for you, check out our resource on the best home equity sharing companies.