How It Works

We believe you deserve a smarter, safer way to access home equity wealth. That’s why we created EquityChoice.

What is EquityChoice and How Does it Work?

EquityChoice is a new type of residential second mortgage (called a Shared Appreciation Mortgage) that is designed to give homeowners access to a portion of their home equity wealth with more flexible terms than traditional home loans and lower costs and more safeguards than non-regulated equity investment financing options. 

With EquityChoice, you don’t owe monthly payments until the end of the loan term. At that time, you’ll make a single payment which includes:

  • the initial amount borrowed
  • interest that compounds monthly at a “below market” fixed rate 
  • a share of your home’s future appreciation

Let’s look at an illustrated example of how EquityChoice could work

You own a home worth $1,000,000 and would like access to $100,000 in immediate funds.With EquityChoice, you’ll access funds and have no monthly payments for 10 years. At maturity, you’ll owe the principal, fixed interest (4.5% compounded monthly) + Shared Appreciation.

Let’s look at what your equity position would be and how much you would owe at the end of your EquityChoice (excluding what you might still owe on your primary 1st lien) loan term depending on various housing market outcomes using the example scenario provided.

Let’s say the Index value of homes in your region depreciates by 2% annually and is worth $817,073 when it’s time to pay off the loan. You’ll owe $156,757 and you’ll still have $660,316 in home equity remaining.

Now, let’s assume the Index value of homes in your region doesn’t change, you’ll only owe $171,757. The $15,000 in Shared Appreciation you’ll owe equates to the difference between the Future Index Value and the Initial Agreed Value. $1,000,000 – $950,000 = $50,000 *30% = $15,000. Furthermore, you will still have $828,243 in home equity.

Let’s say the Index value of homes in your region increases by 2% annually to $1,218,994, you’ll owe $237,455 and will still have $981,539 in home equity remaining.

What if the Index value of homes in your region goes up significantly by 6% annually to $1,790,848. Using the same math, you would owe $409,011. However, since EquityChoice has a Capped Payoff Amount, the amount you owe is capped at $347,825 (as of 12/21/23). Instead, you will owe just $347,825 and will still have equity of $1,443,023 remaining.

Note: The Capped Payoff Amount for this loan in CA was $347,824 (as of 12/21/2023)

The EquityChoice Advantage

Immediate access to funds that can be utilized now, up to $500,000

A below-market, fixed interest rate, with a shared appreciation feature

No interim or monthly payments required

Tax advantages for homeowners, business owners, and investors (consult tax advisor)

Increase cash flow with the ability to reinvest funds to gain investment income

No prepayment penalties at any time

Unrestricted use of funds for reinvestment or preservation of assets


By design, EquityChoice is a shared appreciation financing alternative that is also a residential mortgage. This significantly differentiates our product from other home equity sharing programs because of safeguards that:


  • limit how much you can owe no matter how much or fast your home appreciates
  • abide by standard loan terms and lender obligations that are regulated by state and federal authorities 
  • require the loan to be originated by an approved, active NMLS licensed loan officer
  • create transparency with loan processing and servicing which follows standard mortgage industry practices
  • offer flexibility with the amount you choose to borrow 


The choice is entirely up to you; however, we do suggest thinking of long-term strategies that can assist in diversifying your investments, building wealth with the time advantage of immediate funds available, and increasing monthly cash flow. Common use cases include: 

  • buying a second home or rental property
  • reinvesting in assets with high-yield potential (consult tax advisor)
  • adding monthly cash flow 
  • making “value added” home improvements or renovating to “age in place”
  • starting or funding an existing business 
  • investing in or paying off educational expenses
  • funding long-term expenses and/or retirement needs

End of Term

When the loan matures, you have various options for paying back the outstanding loan balance such as:

  • using funds from savings, income from real estate properties, or other investment account
  • refinancing with a traditional mortgage or home equity loan
  • using part of the proceeds from selling the home

Get Started Today

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