Reverse Mortgage, HELOC or New Way to Tap Home Equity

“Fintechs” and “Proptechs” offer new ways to tap home equity besides reverse mortgage, HELOC.

What else could you have done? There are a number of new financial technology companies (called “fintechs” or “proptechs”) playing in this space that are trying to find novel ways to allow you to tap into your equity outside of a traditional home equity line of credit (HELOC), second mortgage, or reverse mortgage. Here are three to check out:

• Hometap, for example, makes an investment in the property in exchange for taking an equity stake in your home. Currently offered in 15 states, the company takes an ownership stake in the property, making a bet against the future value of your home.
• Unison, which is available in 30 states and converts “up to 17.5% of your home’s value to cash” and “in return, we share in a portion of your home’s value when you decide to sell.”
• Unlock Technologies, whose website says “a typical agreement might exchange 10% of the current home’s value (cash to you) for 16% of the future home’s value (the Unlock Share).”

This article originally appeared on ThinkGlink.com. Read the full article here.