HOMETAP

OVERVIEW

Hometap was established to provide homeowners with an innovative financial option beyond traditional home loans or second mortgages. Founded with the purpose of enabling homeowners to access the equity they’ve built up in their homes without taking on additional debt, Hometap appeals to a wide range of homeowners who might need cash for renovations, debt consolidation, or other significant expenses. By investing in a portion of the home's future value, Hometap offers these individuals a way to achieve their financial goals without the immediate burden of monthly payments or interest rates typical of other financing methods. Regarding costs, Hometap doesn't operate like a typical loan, so there are no monthly payments or interest rates involved. Instead, the company invests in a portion of a home’s future value and, in return, receives a percentage of the sale price when the home is sold, or the homeowner decides to settle the investment, typically within a 10-year term. This means the total cost to the homeowner depends on the home's value at the time of sale. Additionally, there are some fees involved, such as an initial $99 application fee and a third-party home appraisal fee required during the evaluation phase. These contribute to the overall cost of engaging Hometap’s services but allow for a debt-free option to access home equity.