> ## Content Index
> Fetch the complete content index at: https://www.consumernews.ai/llms.txt
> Use this file to discover other available public pages before exploring further.

# Before you sign a home-equity sharing agreement: 7 numbers to calculate
- URL: https://www.consumernews.ai/before-you-sign-a-home-equity-sharing-agreement-7-numbers-to-calculate/
- Published: 2026-08-08T14:43:35.000Z
- Updated: 2026-08-08T14:46:49.000Z
- Description: What does "home equity sharing" really mean? Is it just like a loan?
- Author: The Editors
- Tags: Consumer Protection, Money

A home-equity agreement may promise cash with no monthly payment and no traditional interest charge. That does **not** mean the money is cheap.

Before signing, ask the company to put these seven numbers in writing:

**1\. How much cash will you actually receive?**  
Start with the advertised advance, then subtract origination fees, appraisal charges, closing costs and any debts the company requires you to pay off.

**2\. What percentage of your home’s future value or appreciation are you giving up?**  
Do not rely on phrases such as “shared appreciation.” Ask for the exact formula.

[Homeowners got cash with ‘no interest.’ Lawsuit says the real cost was their home equityA new class-action lawsuit accuses Unison of disguising high-cost mortgage loans as “home equity investments” with no interest or monthly payments.![](https://storage.ghost.io/c/2a/11/2a11693a-adfd-404e-b346-dc871787142e/content/images/icon/cnai-logo-icon-600-sq-1ce9e1a8-8df3-41a4-81b1-aadd6dcac513.png)ConsumerNews.aiJames R. Hood![](https://storage.ghost.io/c/2a/11/2a11693a-adfd-404e-b346-dc871787142e/content/images/thumbnail/house-money-midj-2026-7acb5d0b-1dab-47e2-9d6b-3cd6f67c7a3f.jpg)](https://www.consumernews.ai/homeowners-got-cash-with-no-interest-lawsuit-says-the-real-cost-was-their-home-equity/)

**3\. What home value will the company use as its starting point?**  
Some agreements apply a discount or adjustment to the home's appraised value. That can substantially increase the company's share of future appreciation.

**4\. What would you owe if home prices rise 3%, 5% or 8% a year?**  
Ask for written payoff examples after five, 10 and 15 years. A relatively modest annual increase can produce a very large settlement amount over time.

**5\. What would it cost to buy the company out without selling your house?**  
This may be especially important for older homeowners who want to remain in their homes or eventually leave them to family members.

**6\. What happens if you refinance?**  
A home-equity agreement may complicate a future mortgage or HELOC because the company generally records an interest or lien against the property. Ask whether refinancing requires the agreement to be paid off.

**7\. What is the maximum amount you could owe?**  
Some contracts include caps or limits; others may expose homeowners to much larger payments as property values rise. Get the exact maximum — if there is one.

### Then compare it with ordinary borrowing

Before giving up a share of your home equity, get quotes for a:

- Home-equity loan
- Home-equity line of credit
- Cash-out refinance
- Reverse mortgage, if you are eligible

A traditional loan comes with interest and monthly payments, but its costs may be considerably easier to understand and predict.

> **Bottom line:** Don't compare a home-equity agreement based on the monthly payment — which may be zero. Compare what you could ultimately have to pay to get your house back free and clear.