How does Hometap compare?

We created this chart to help you compare a Hometap Investment with the most common types of loans used to access home equity.


HometapHome Equity LoanHELOCCash Out Refinance
Average Credit ScoreTypically > 630 (no firm requirement)Min, score of 680Min, score of 680Min score of 620
Average Loan-to-ValueMax LTV of 75%Max LTV of 80-85%Max LTV of 80-85%Max LTV of 70%
Average Debt-to-IncomeN/A43%43%50%
Other restrictions (vary by lender)No prepayment penaltiesPrepayment penaltiesMinimum annual draw requirements, Prepayment penalties + cancellation fees occur with some lendersPrepayment penalties + cancellation fees

Pricing + Terms

(Assume home value is equal to $1 million)

HometapHome Equity LoanHELOCCash Out Refinance
Investment/Loan Amount$100K$100k$100k$100K
Term10 Years10 Years10 Years10 Years
Interest Rate TypeNo interest rateFixed or variableTypically variableFixed or variable
Average Interest RateNo interest rate8.4%5.6%4.8%
Monthly PaymentNo monthly payment$1,533$1,300$1,233
Closing Costs + Fees3% of Investment + closing costs3-5% of the loan amountTypically no cost due at closing. $100 in annual fees$4,500
Due at Sale or Refinancing16.7% of home valueOutstanding PrincipalOutstanding PrincipalOutstanding Principal

* Loan interest levels and payments are based on a credit score of 730. Rates sourced from (as of December 2018).

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