Point Home Equity Investment 2026: How the HEI Product Works for Homeowners and MLOs

Point offers a Home Equity Investment (HEI) product that provides homeowners a lump sum in exchange for a share of the home's future appreciation. No monthly payments are required. The investment is settled when the homeowner sells, refinances, or reaches the contract end date.

How the Point HEI Is Structured

• ✦Point provides cash upfront based on a percentage of the home's current appraised value
• ✦In exchange, Point receives a share of the change in value from origination to settlement
• ✦Point also participates in downside: if the home loses value, Point absorbs a portion of the loss
• ✦Contract terms are typically up to 30 years, with settlement required at term end
• ✦An origination fee is deducted from the investment proceeds at closing

Risk-Adjusted Value Assessment

Point applies a risk adjustment to the initial home value used to calculate the investment. This adjustment effectively sets the origination value below the appraised value, reducing Point's exposure and the homeowner's appreciation share base. Homeowners should understand that appreciation is measured from the adjusted value, not the full appraised value at origination. The adjusted value is disclosed in the agreement and affects the settlement calculation in the homeowner's favor if the home depreciates.

Lien Position and First Mortgage Interaction

• ✦Point records a lien against the property securing its future payment right
• ✦The existing first mortgage lender must consent to the Point lien being placed on the property
• ✦At refinance, Point must subordinate to the new first mortgage
• ✦Some lenders have restrictions on co-investment liens recorded against properties they finance or service
• ✦MLOs should confirm lender policy before recommending a Point HEI alongside a refinance or purchase

Settlement Scenarios

• ✦Sale of the property: Point is paid from proceeds at closing
• ✦Refinance: Point must subordinate or be settled depending on LTV constraints of the new financing
• ✦Buyout: homeowner can buy out Point's share using an appraisal at any time during the contract
• ✦End of term: homeowner must settle with Point, typically by selling or refinancing