New Two-Tier Model Brings Greater Affordability and Flexibility to Homeowners
Hometap, the Boston-based financial technology company focused on modern home equity financing solutions, has announced a new two-tier pricing structure for its home equity investments (HEIs), designed to make accessing home equity more affordable and competitive with traditional financing options.
The updated structure aims to provide homeowners with a flexible way to access the value they have built in their homes without taking on monthly loan payments. According to Hometap, the new pricing model offers an all-in cost over a 10-year period that is competitive with many credit cards and personal loans while approaching the affordability of traditional home equity products such as home equity loans and home equity lines of credit (HELOCs).
With this move, Hometap strengthens its position as one of the companies helping expand the availability of alternative home financing solutions for homeowners seeking greater financial flexibility.
Helping Homeowners Access Their Built-Up Equity
As homeowners continue to face rising costs, including increased insurance premiums, property taxes, maintenance expenses, and other financial pressures, many are looking for ways to access capital without adding new monthly obligations.
Hometap’s home equity investment model allows eligible homeowners to receive cash in exchange for sharing a portion of their home’s future value. Unlike traditional loans, HEIs do not require monthly principal and interest payments, giving homeowners another option for managing financial needs.
“As rising insurance premiums, property taxes, and other homeownership costs continue to place added pressure on monthly household budgets, homeowners need financial solutions that work for them, not against them,” said Jeffrey Glass, CEO of Hometap.
Glass explained that the company’s goal is to make home equity access more affordable, flexible, and empowering by creating products designed around homeowners’ financial circumstances.
New Two-Tier Pricing Model
Under the updated pricing structure, homeowners will have a clearer and more predictable cost framework based on how long they hold their investment.
Homeowners who settle their investment within the first five years will pay a 1.65x multiplier on Hometap’s initial investment as a percentage of the home’s value. For homeowners who settle after year five, the structure applies a 1.80x multiplier.
The company said the updated approach provides additional flexibility for homeowners by allowing them to choose the timing that best fits their financial situation.
The pricing model is designed to provide transparency from the beginning, helping homeowners understand their potential costs and make informed decisions about their financial future.
Built-In Protection and No Prepayment Penalties
A key feature of Hometap’s home equity investment model is its pricing cap, which acts as a consumer protection measure.
The company’s cap is now set at 18.5% compounded monthly, meaning homeowners have visibility into the maximum potential cost of their investment from the start.
Additionally, homeowners maintain the ability to settle their investment at any time before the end of the agreement term without facing prepayment penalties.
Hometap said these features reflect its broader commitment to creating financial products that prioritize homeowner choice and long-term flexibility.
Closing the Gap Between HEIs and Traditional Home Equity Products
The company believes the new pricing structure helps narrow the cost difference between home equity investments and more traditional financing options.
“Our commitment to maturing the home equity investment market means bringing the most accessible product we can to homeowners,” said Sarah Dekin, President of Hometap.
Dekin noted that the updated pricing significantly reduces the gap between HEIs and traditional home equity products, including HELOCs and home equity loans.
For many homeowners, the combination of no monthly payments and flexible settlement options may make home equity investments a more attractive alternative, particularly for those who want access to cash while avoiding additional monthly debt obligations.
Supporting Homeowners Through Education and Guidance
Beyond pricing improvements, Hometap continues to focus on homeowner education and transparency throughout the investment process.
Each homeowner works with a dedicated Investment Manager who helps explain the process, review personalized settlement scenarios, and answer questions before any agreement is finalized.
Throughout the life of the investment, homeowners also have access to resources developed by Hometap, including a pricing calculator, pricing guide, and homeowner dashboard.
These tools are designed to help homeowners understand their options, track their investment, and make informed decisions about when and how to settle.
Expanding the Future of Home Equity Financing
Hometap’s latest pricing update reflects the company’s broader mission to modernize the way homeowners access the wealth stored in their properties.
As home values have increased in many markets, home equity has become one of the largest sources of personal wealth for millions of homeowners. However, accessing that equity has traditionally required taking on additional debt through loans or lines of credit.
By offering a different approach, Hometap aims to provide homeowners with more choices when navigating major life events, financial goals, and unexpected expenses.
The company’s new two-tier pricing structure represents another step toward making home equity investments a more competitive and accessible financial solution for homeowners across the country.
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