What home equity costs

On $50,000 from a $500,000 home gaining 3% a year and sold in year 10, the home equity investments we can compute cost $82,533 to $86,892, median $86,892; the lines of credit $30,425 to $43,750, median $36,750; the fixed loans $20,908 to $36,341, median $28,732.

Those figures include published fees and every payment the published rate implies, and exclude taxes, insurance, and anything quoted only after you apply.

What do the published terms come to?

The spread below is across the products we hold, not a market average.

Total cost beyond the cash received, computed from published terms at the lowest published rate. checked 2026-09-18
Type	Products	Sold in year 3	Sold in year 10
Home equity investment (HEI)	2	$32,295 to $37,932, median $37,932	$82,533 to $86,892, median $86,892
Home equity line of credit (HELOC)	9	$9,075 to $13,125, median $11,025	$30,425 to $43,750, median $36,750
Home equity loan (fixed)	3	$9,751 to $12,139, median $9,921	$20,908 to $36,341, median $28,732

A worked example

home value in year 10 = $500,000 x 1.03^10 = $671,958 starting value = $500,000 x (1 - 5%) = $475,000 payoff = $50,000 + 40.0% x ($671,958 - $475,000) = $128,783 upfront fees = $3,750 total cost = $128,783 - $50,000 + $3,750 = $82,533 annualized = 10.8%

Unison, from its published terms. checked 2026-09-29 This is an example, not a quote.

What does the published figure leave out?

Closing costs a provider does not price. Appraisal, title, and recording fees are named on most pages and priced on few; where a provider publishes a range the low end is added, otherwise nothing is.
Rate changes. Every line of credit here is variable and every figure holds the lowest published rate flat for the whole hold.
The gap between the lowest published rate and the one you are offered. “As low as” is the best case the page allows.
What the home actually does. A share of value is priced today and paid at the sale; 3% a year is the scenario, not a forecast.
Taxes, insurance, and early-payoff charges, which depend on you and on when you leave.

What can you negotiate, and what can you not?

Negotiable in practice: the origination fee and, on a loan, the rate within the published range, if your file is strong. Not negotiable: the share structure of an investment, the cap, and the published minimums.

Questions worth asking before you apply

What would I owe if I sold in year 3, year 5, and year 10, on my home's appraised value, in writing?
Is there a cap on what I repay, and how is it computed?
Is the starting value adjusted below the appraisal, and by how much?
What are the closing costs in dollars, and which of them come back if I do not proceed?

Who this is not for

If you need a recommendation, this page will not give you one. It describes what the published numbers are and what they leave out. We have not used these providers, we do not rate them, and this is not financial advice.

Sources

Every figure above is computed from the rows in data.json, each carrying its own source URL and check date.
The method page gives the formula in full and the three reasons a cost can be missing.

Written by Kaz (pen name). Figures are copied from providers' published pages on the dates shown. We have not used these products. Corrections: contact form.