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It’s nice to have options. Hometap doesn’t lock you in; you can settle anytime, which I like.

Sacco Leveraged His Home Equity to Build Up His Investment Portfolio

Sacco was vetting different ways to tap into his home equity so that he could better diversify his investment portfolio. A landlord in California, Sacco wanted to contribute more funds to his IRA and Roth IRA accounts, but he hadn’t reached his savings goals as quickly as he’d hoped.

He knew the value he’d built up in his condo could not only help him contribute to his investment accounts, but also leave him with some additional cash on hand. But he was running into dead ends when he approached lenders.

“I tried a couple of different avenues like home equity loans and refinancing, but they were so involved; so many rules surround [them] and you have to start paying them back right away,” explained Sacco. “I rent my place, so I couldn’t do [certain] loans with a rental.”

Sacco was frustrated with his lack of options, but then he heard an advertisement on NPR about home equity investments from Hometap.

“It said ‘Tap your equity without taking out a loan,’ and I thought that sounded pretty interesting.”

Sacco appreciated how streamlined the application process felt in comparison to his previous experiences with loans and refinances.

“It all seemed to go relatively smoothly; hassle-free,” said Sacco, “It didn’t tax me in terms of, I have to do this, have to do that. And it was all done remotely; I appreciated that.”

With cash from his home equity in hand, Sacco is ready to begin reaching his investment goals. He plans to spend several years building up his IRA, and appreciates knowing that his settlement options are flexible.

“Part of me would like to pay [the Investment] off within the next three to five years, but part of me is like, ‘I’ve got ‘til 2032, I can see how things go from there,’” said Sacco. “It’s nice to have options. Hometap doesn’t lock you in; you can settle anytime*, which I like.”

*Disclaimers: This homeowner was compensated for providing Hometap with an interview about his Investment experience.

*The effective period of a home equity investment from Hometap is ten years.