Key facts
- Hometap has introduced a new two-tier pricing model for home equity investments.
- Settlements within five years will use a 1.65x multiplier.
- Settlements after five years will use a 1.80x multiplier.
- Costs for these investments are capped at 18.5%.
- The cost cap is compounded monthly.
Hometap has announced an update to its home equity investment (HEI) pricing structure, introducing a new two-tier multiplier model. Under this revised system, home equity investments that are settled within a five-year period will be subject to a 1.65x multiplier. For investments settled beyond the five-year mark, a higher multiplier of 1.80x will be applied. The company has also established a cap on the total costs associated with these investments, limiting them to 18.5% compounded on a monthly basis. This change aims to provide a clearer and potentially more structured approach to home equity investments offered by Hometap.