Unison Homeowner Status
Eligible
Estimated Unlock Value
$0
Based on estimated home value at $0
Origination
Unison provides homeowners with up to $500k in cash today in exchange for an option to share in their home’s change in value, up or down, in the future. There is no monthly payment and no interest!
Termination
Homeowners make no payments to Unison until they sell their home or 30 years pass. At that time, Unison will settle up based on the value of Unison’s option, and they will owe Unison an amount equal to the cash payment Unison provided, plus or minus a percentage of their home’s change in value.
Example
Home value: $1,000,000
Unison investment: $100,000 (10%)
Max Unison investment: 17.5% / $500k
Unison risk multiple: 4x
Unison share in future price change: 40%
Max Unison share: 70% (4 x 17.5%)
How much equity can you access from your home?
Alternate Home Equity Products
How is a Unison Equity Sharing Agreement different from other methods of tapping into equity?
| Method | Unison Equity Sharing Agreements | HELOC | Cash out refinance | Reverse mortgage |
|---|---|---|---|---|
| Interest | None | Yes - usually variable rates | Yes | Yes |
| Monthly Payments | None | Yes | Yes | None |
| Summary | Receive up to 17.5% of home equity in cash; when the house sells, pay back the original amount and a percentage of its change in value | Works like a credit card where the amount available is based on your equity | A new, higher mortgage loan replaces the old one, with potentially lower interest rates and extra cash in the form of a loan | Interest is added to the loan, and paid back as a lump sum when the house sells or the owner passes away |
| Other pertinent info | If the home depreciates in value, you pay less | You only pay interest on the amount that you use, not the amount available | New lien on your home applies to both the new mortgage and the loan | Homeowner must be over 62 years of age to qualify |