Are you familiar with Home Equity Investments?

Babs2u

Babs2u

Senior Member
In the last couple of years I have been forced to use credit cards for medical expenses. The monthly payments are high and I have been neglecting some home repairs. I came across some information on Point, a Home Equity Investment. You can borrow a percentage of your home equity with no monthly payments and not pay back until you sell your home.

I realize there are charges and one owes more than the borrowed amount but it might be an option for me. I could pay off my credit cards, repair my house and have money left over. Otherwise I fear amassing more debt and possibly losing my home.

Any comments?
 

I don't have anyone to advise me so I am doing my own research. Thanks for your input.
 
I see ads on TV all the time for reverse home equity loans, such as you speak about. I honestly don’t know how legitimate they are or if they are as “too good to be true“ as they sound.

They all say the money does not have to be paid back until the homeowner passes on and the house has to be sold.

All I can say is to keep researching until your eyeballs look like road maps and do your due diligence. If you do make a decision, make sure you go with a company that is well established and not some flyby night place on the Internet. I might start by talking to a local bank or two or three and get their opinions.

I hope you come up with an answer. You should not have to even be considering this. It’s a shame to find ourselves in this sort of position when we get to be this age. You have worked all your life for what you have and you should not have to be worried about losing it because of medical bills. Something is really wrong with this picture in our United States.
 
AI says - "In summary, Point’s HEI is a unique financial tool that provides homeowners with immediate cash access without monthly payments, making it appealing for those seeking financial flexibility or relief from debt. While it offers significant advantages in terms of accessibility and structure, the long-term financial implications depend heavily on future home value changes and geographic eligibility. The product is particularly suited for homeowners who prioritize cash flow over long-term equity retention and are comfortable with a shared appreciation model."

Point is paying you for part ownership in your home and part ownership in any appreciation. It's not a loan, like a Home Equity Line of Credit (HELOC) or reverse mtg. One question I would have is there any circumstance where they could demand their money back and force a sale of the house.

consumerfinance.gov
"A reverse mortgage loan, like a traditional mortgage, allows homeowners to borrow money using their home as security for the loan. Also like a traditional mortgage, when you take out a reverse mortgage loan, the title to your home remains in your name. However, unlike a traditional mortgage, with a reverse mortgage loan, borrowers don’t make monthly mortgage payments. The loan is repaid when the borrower no longer lives in the home. Interest and fees are added to the loan balance each month and the balance grows. With a reverse mortgage loan, homeowners are required to pay property taxes and homeowners insurance, use the property as their principal residence, and keep their house in good condition."

I would find a Certified Financial Planner, that charges for time only, and get with them to review your entire case. I get the feeling that making a mistake here could have serious repercussions. You can research till your eyes fall out, but you want advice from a pro.

Have you tried to get on repayment plan w the CC's at a longer term and lower interest rates?
 
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Have you thought about a balance transfer? I've done them and they're much easier and I think less risky.
Look for a bank that may be offering 0% interest for 12-18 mos to pay off. If you still have a balance...you hop over to another bank w/that offer. (or one similar)

**i would not advise a reverse mortgage
 
dobielvr said:
Have you thought about a balance transfer? I've done them and they're much easier and I think less risky.
Look for a bank that may be offering 0% interest for 12-18 mos to pay off. If you still have a balance...you hop over to another bank w/that offer. (or one similar)

**i would not advise a reverse mortgage
Click to expand...

Yes, I should check into a balance transfer. Berore she died, my sister nearly depleted her savings due to the cost of nursing homes and visiting nurses. She also suffered from dementia and took out a reverse mortgage which I understand caused problems. Thanks.
 
Unique financial tool doesn't sound safe.

Reverse mortgage: FHA qualified only. Most of those you see on TV are not and have shady clauses that can put your house in jeopardy. And you might not qualify because of the large balance you have on the house at this point.

HELOC Home Equity Loan: This one is much easier to get but you would have a monthly payment. You could get enough to pay off your cards and do the home repairs. Interest rates are generally lower than most loans. Talk to your mortgage company.

Or talk to you mortgage company about refinancing. Take only what you need now to keep your payments the same. If your mortgage company will agree.

Try the zero interest cards but find out how high their interests rates will be once that grace period ends just in case you can't roll the balance to a new card.
 
While I was forced into it, I like apartment living. Cheaper than houses I have had, zero upkeep and zero risk.
 

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