Sarah Dekin Shares Insights on Home Equity Investment Demand in Morning Brew

Also called home equity agreements, HEIs are relatively new, emerging in 2006 with a company called Unison, followed by a handful of other players (Point, Hometap, and Unlock). Certain HEI companies like Horizon now even invite you to “transform dormant home equity into bitcoin,” enticing users with $500 worth of free bitcoin if they sign up.

HEIs are expected to expand as more people seek to tap into their home equity without saddling themselves with debt at today’s high interest rates. “With HELOC and home equity loan rates hovering between 8% and 9%, many are reluctant to take on additional monthly payments,” explains Sarah Dekin, president of home equity investment provider Hometap. “Despite a record $35 trillion in home equity nationwide, much of that wealth remains difficult to access.”

This article originally appeared in an edition of the Morning Brew newsletter, "The Playbook." Read the full newsletter here.