Point Competitors and Alternatives

Point is a home equity sharing agreement (HESA) company for homeowners. The company purchases a share of your home’s equity, and you get a lump-sum payment in return. Those funds can then be used as needed.

Below, we’ll look at how Point compares to some of its primary competitors and some alternative home equity financing options.

Point competitors for home equity sharing

Home equity sharing agreements (HESAs) allow homeowners to access the equity in their homes without taking on traditional debt. Instead of borrowing money, homeowners sell a portion of their future home value to a company in exchange for a lump-sum payment.

The amount the company receives when the homeowner eventually sells the property is based on the agreed-upon percentage of the home’s future value.

In a HESA, there are no monthly payments or interest rates. The agreement typically lasts for a set number of years, during which the homeowner can choose to sell the home or buy out the company’s share. If the home appreciates in value, the company receives a proportionally higher payout. Conversely, if the home decreases in value, the company’s payout is lower.

Point’s two direct competitors are Hometap and Unlock. In the following table, we’ll examine how each company compares to Point.

	Point	Hometap	Unlock
Our rating	4.6/5	4.8/5	4.5/5
Credit score	500+	500+	550+
Min. investment	$25,000	$15,000	$30,000
Max. investment	$500,000	$600,000	$500,000
Term length	30 years	10 years	10 years
	Prequalify	Prequalify	Prequalify

Hometap

Best Overall HESA

4.8 _/5

LendEDU Rating

Free Quote

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What makes it a good alternative to Point?

Hometap is an excellent alternative to Point as it received a higher editorial rating from our team and received higher ratings from its customers. Its investment range is wider than Point’s, accommodating the needs of homeowners looking for a smaller or larger investment.

Another difference is in the length of the term. Hometap’s term length is set at 10 years, which is appealing for those who would like a quicker resolution to their investment.

• Investments from $15,000 to $600,000
• Highest customer rating of all companies listed
• No out-of-pocket costs

Unlock

Best HESA for Partial Payments

4.5 _/5

LendEDU Rating

Free Quote

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What makes it a good alternative to Point?

Unlock offers an equity-sharing agreement that with more repayment flexibility than Point. It allows homeowners to make partial payments throughout the term as opposed to one single lump sum. The term is also shorter, at 10 years, compared to Point’s 30-year term, which is better for those looking to avoid a longer-term arrangement.

• Investments from $30,000 to $500,000
• Only company allowing partial buyout payments
• Prequalify and receive a cash estimate with no impact on your credit score

Point alternatives for home equity financing

Though Point, Hometap, and Unlock can all help you access your home’s equity, they’re not your only option if you need cash. Homeowners can also consider a home equity loan or line of credit instead.

A home equity loan allows you to borrow a lump sum of money against the equity in your home, which you repay with a fixed interest rate over a set term. This option is ideal for homeowners who need a large amount of cash upfront and prefer the stability of predictable monthly payments.

A home equity line of credit (HELOC) works more like a credit card. It provides a revolving line of credit that you can draw from as needed, up to a certain limit, during a set draw period. HELOCs typically come with variable interest rates, meaning your payments can fluctuate. They offer flexibility, making them a good choice for ongoing expenses or projects where you might not need all the funds at once.

See how these products measure up to home equity sharing below.

	Point	Figure	LendingTree
Product	Investment	HELOC	Home equity loans & HELOC
Credit score	500+	640+	620+
Min. funding	$25,000	$15,000	$10,000
Max. funding	$500,000	$400,000	$2 million
Term length	30 years	5 – 30 years	5 – 30 years
	Prequalify	Prequalify	Prequalify

Figure

Best Overall HELOC

4.9 _/5

LendEDU Rating

View Rates

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What makes it a good alternative to Point?

Figure offers a variety of financing products, including HELOCs, personal loans, and mortgage refinancing. They also offer banking services, investment options, and merchant payment solutions.

The biggest benefit, when compared to Point, is Figure’s much higher loan-to-value ratio, which allows you to tap 85% of your home’s value versus just 80% from Point.

There’s also a smaller minimum payment ($15,000 vs. Point’s $25,000), and there are more term choices, too. You can choose between five and 30-year terms. Point offers a single 30-year term.

• Rates between 2.88% and 13.25% APR
• Funding between $15,000 and $250,000
• The initial draw will be repaid at a fixed rate

The advertised rate includes .75% discount for opting into a Quorum membership and enrolling in autopay. Terms and conditions apply. Visit Figure.com for further details. Figure Lending LLC is an equal opportunity lender. NMLS #1717824

LendingTree

Best Home Equity Marketplace

4.5 _/5

LendEDU Rating

View Rates

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What makes it a good alternative to Point?

LendingTree is a great alternative to Point for those who prefer a marketplace approach to finding the best home equity financing options.

Unlike Point, which offers a single product, LendingTree connects you with a wide range of lenders, allowing you to compare various home equity loan and HELOC offers. This can help you find the best rates and terms for your needs, whether you’re looking for a short-term loan or a larger line of credit.

• Access multiple lenders for more choices for home equity financing
• Compare various loan and HELOC offers side by side to find the best rates and terms
• Flexible application process allows you to quickly prequalify and explore financing options without committing immediately

FAQ

What is an example of how a Point home equity share works?

An example of how a Point home equity share works is as follows:

• Suppose you own a home valued at $500,000 and you need to access $50,000 in cash.
• Point agrees to provide you with that $50,000 in exchange for a share of the future appreciation of your home.
• In this case, Point might offer a 10% equity share in your home, which means that when you sell your home or refinance your mortgage, Point would be entitled to 10% of the increase in your home’s value since the time of the agreement.

For instance, if your home’s value increases to $600,000 by the time you sell it, the increase in value is $100,000. Point would receive 10% of that increase, which is $10,000, in addition to the initial $50,000 they provided, totaling $60,000. If your home decreases in value, Point would share in the loss, potentially receiving less than the $50,000 they originally provided.

Is home equity sharing worth it?

Whether home equity sharing is worth it depends on your specific financial situation and goals.

Home equity sharing can be a good option if you need access to cash without taking on new debt or monthly payments, particularly if you expect your home’s value to increase modestly or remain stable. It can also be useful if your credit score or income might make traditional loans more difficult or expensive to obtain.

However, it’s important to consider that by entering into a home equity sharing agreement, you are giving up a portion of the future appreciation of your home. If your home’s value increases significantly, you might end up paying more to Point than you would have with a traditional loan.

It’s crucial to weigh the potential costs and benefits and consider consulting a financial advisor to determine if this option aligns with your long-term financial goals.

What do customers say about using Point’s home equity sharing agreements?

Customer feedback on Point’s home equity sharing agreements is generally mixed. Some customers appreciate the flexibility of accessing cash without taking on additional debt or monthly payments, especially in situations where traditional financing options are limited. They often highlight the ease of the application process and the customer service experience as positives.

On the other hand, some customers express concerns about the cost of the agreement in the long term, particularly if their home appreciates significantly in value. There are also occasional mentions of the complexity of the agreement terms and the need for a thorough understanding of the potential future financial impact.

As with any financial product, it’s essential for potential customers to fully understand the terms and consider all possible outcomes before proceeding.

Recap of Point alternatives and competitors