HEI Rates
The Bottom Line
- HEIs don't have a stated interest rate. There's no "HEI rate" the way there's a set interest rate on a mortgage or HELOC, which makes them hard to compare to other financing at a glance.
- Effective APR closes that gap. It's the yearly growth rate of what you'd owe, expressed the same way a loan's interest rate is — a fair way to compare one HEI to another, and a useful reference point against other financing too.
- Effective APR varies by holding period. Effective APR is higher if you settle within the first few years and falls sharply the longer you delay repayment.
- Effective APR alone doesn't capture total cost. Always compare the real dollar cost, not just the annualized rate — see Current Rates below.
Estimated Effective APR by Provider
Effective APR isn't published by any provider. It's the yearly growth rate of what you'd owe, similar to an interest rate. The table below shows it for all 5 providers we track under one fixed scenario. Notice how it runs highest at a short exit and drops the longer you hold, for every provider.
Scenario assumptions
- $500K home
- 700 credit score
- $50K requested
- 10% LTV
- 3.5% annual home price growth
| Exit Year | Home Value | Point | Hometap | Unison | Unlock | Splitero |
|---|---|---|---|---|---|---|
| Year 1 | $517,500 | 29.96% | 31.31% | 30.29% | 31.61% | 31.36% |
| Year 3 | $554,359 | 22.93% | 23.76% | 21.08% | 23.68% | 23.36% |
| Year 5 | $593,843 | 21.57% | 16.45% | 16.20% | 18.60% | 21.15% |
| Year 7 | $636,140 | 16.91% | 14.00% | 13.89% | 14.08% | 15.82% |
| Year 10 | $705,299 | 13.25% | 10.75% | 11.93% | 10.79% | 11.98% |
| Year 20 | $994,894 | 8.89% | 10-yr max term | 9.00% | 10-yr max term | 7.66% |
| Year 30 | $1,403,397 | 7.33% | 10-yr max term | 7.66% | 10-yr max term | 6.25% |
Regulators use this framing too. A 2024 CFPB report found many providers' rate caps let the settlement amount grow by up to 19.5–22% annually in early years — "substantially higher than interest rates on most home-secured credit, and somewhat less than interest rates on unsecured debt like credit cards." (Source: CFPB, Issue Spotlight: Home Equity Contracts Market Overview)
Your own effective APR will vary by provider based on your credit score, home value, and requested amount — see the cost calculator for a personalized estimate.
Current Rates on Other Financing
For reference, here's what other ways to access home equity or cash generally cost right now, based on recent national averages.
Rate alone doesn't capture total cost. Most loan products pay down principal via monthly payments, while an HEI's full amount accrues untouched until settlement, so a similar rate can mean very different total dollar costs. The exception is a reverse mortgage, which also has no monthly payments, making its rate a closer apples-to-apples comparison against effective APR. See HEI vs. HELOC and HEI vs. Reverse Mortgage for real dollar comparisons.
All rates are pulled live via FRED. None are personalized quotes, and rates change frequently.
Frequently Asked Questions
Do HEI providers charge interest?
No. An HEI or HEA has no stated interest rate — you give up a share of your home's future value instead of paying interest. To make providers comparable to each other, we compute an "effective APR": an estimated annualized cost rate based on a provider's actual contract terms, not a rate any provider discloses.
What is a typical HEI effective APR?
It depends heavily on how long you hold the agreement. In our representative scenario, estimated effective APR ranged from roughly 30% for a 1-year exit down to under 8% for a 30-year exit, across the 5 providers we track. Run your own numbers with the cost calculator, since your home value, credit score, and requested amount will change the result.
Can I compare HEI effective APR to a HELOC or mortgage rate?
Yes, as a rough reference point, but not a substitute for a real dollar comparison. See Current Rates above for why rate alone can be misleading.
Is an HEI cheaper than a HELOC or reverse mortgage?
It depends on your specific numbers, how long you hold it, and how your home's value changes over that time — there's no single answer. See HEI vs. HELOC and HEI vs. Reverse Mortgage for full dollar-cost comparisons instead of a rate-only answer.