CBS MoneyWatch: HEIs Among the Options to Consider as Homeowners Eye Equity

When is the best time to consider leveraging your home equity -- and perhaps equally important, how? CBS MoneyWatch asked Hometap President Sarah Dekin and other experts the question.

Aly J. Yale examined the possibilities this week, eyeing homeowners' increasing motivation as equity continues to rise, new needs and expenses grow, as well as observers' views on traditional options and home equity investment alternatives.

"If you do opt to tap your home equity, you should also compare your options within that realm," she writes. "Home equity loans and HELOCs are the most commonly used products, but depending on your age, you may also consider a reverse mortgage (these are only for seniors). Home equity investments — which give you an upfront payment in exchange for part of your home's future value — are an option, too.

"[HEIs] provide funds upfront with no monthly payments or debt accrual, but in exchange for the some future value of your home — or its appreciation over time — or both," Sarah adds. "The potential disadvantage here, of course, is that you may miss out on some part of the future value of your home down the line when you settle."

Dig into the full article here.