HomeTap-Startup equity partners.

[Casida Caines]

Has anyone used HomeTap for funding leverage given that there's no monthly payment for the duration of the term? This seems very appealing due to the monthly saving cost when compared to a heloc or other loan options. But, a non-favorable catch is the requirement that Hometap becomes your financial power of attorney over the asset, in the event of default or a breach of contract where they can transfer the deed of your home, and or sell your property without your approval(cost, fees, time)

Below is a situation I'm trying to evaluate.

Home value- 600k

Mortgage=270k

Hometap loan-100k

Hometap's share due in 10 years- 160k.

Standard heloc cost on a 100k @ 5%, 10 year term(int and principle)= 67k in interest.  

Pro- no monthly payments= leverage the cost of $800-$1,000 pymt.

Con- Hometap being a new startup and having power of attorney.

      - Additional equity of 170k at risk; subjected to fees if home is sold under default/breach.

Hometap provides access to as much as 20% of your home’s value in cash for a 10-year term, after which you can pay out Hometap’s investment (which includes their return) by selling the house, using your savings or refinancing.

Link-

https://www.hometap.com/end-debt-stress-estimate?u...