Let's make this simple. Below, we compare five ways to access your home equity, including Unison's Equity Sharing Agreement (sometimes called a home equity investment or HEI) across the questions that matter most: Will I have a monthly payment? Is there an interest rate? What does it do to my existing mortgage? How and when do I pay it back? And most importantly, what does it cost?
First, the answer to one question we hear all the time: no, an Equity Sharing Agreement does NOT affect your existing mortgage. It’s not a refinance and your current mortgage rate stays exactly as it is. If you locked in a low rate a few years ago, an Equity Sharing Agreement doesn't touch it.
Comparisons at a glance
How they work
Equity Sharing Agreement:
Cash now with no monthly payments or interest
Unison invests in your home alongside you, giving you cash today (up to 15% of your home's value, from $30,000 up to $500,000). In exchange, when the agreement ends, you pay back the original amount plus or minus a share of how much your home's value has changed since you started — not a share of your whole home.
Three things make this fundamentally different from every loan on this list:
- No monthly payments for up to 30 years. There’s no interest and nothing is due until the agreement ends.
- You decide when it ends. Sell your home, buy out the agreement, or let it run its full 30-year term.
- You keep full ownership. You remain on the title, you make the decisions, and your existing mortgage is untouched.
Because Unison shares in the change in value, your interests are aligned: if your home appreciates, you both benefit; if it declines in value, Unison shares that loss with you when you settle, as long as the initial Restriction Period has ended.
What it costs: there's no interest, but there is a one-time transaction fee (3.9% of the amount you receive) plus standard third-party closing costs (appraisal, inspection, title/settlement), deducted from your funds at closing — you don't pay out of pocket. Unison also applies a 5% Risk Adjustment to your home's appraised value when setting the starting value.
The long-term cost is the share of appreciation you give up, which depends entirely on how much your home's value changes and when you end the agreement. That's the trade-off: instead of paying interest every month, we take a share of your home’s appreciation (or depreciation). And if your home’s value doesn’t change, then the cost to access cash can be minimal.
HELOC:
A credit card, backed by your house
A home equity line of credit gives you a revolving credit limit you can draw from as needed, usually for a 10-year "draw period," followed by a repayment period. Most HELOCs carry a variable interest rate (the national average is around 7.3–7.5% as of July 2026) so your payment can rise if rates rise. During the draw period, many lenders let you pay interest only. After that, payments step up to include the principal.
A HELOC makes sense if you want flexible, repeated access to funds (say, a phased renovation) and you're confident in your ability to handle a payment that can change. Like an Equity Sharing Agreement, it sits behind your existing mortgage without replacing it. But unlike equity sharing, it adds a new monthly bill from day one.
Home equity loan:
A fixed-rate second mortgage
A home equity loan, sometimes called a HELOAN or second mortgage, hands you a one-time lump sum at a fixed rate (averaging roughly 7.9–8.1% right now) repaid in equal monthly installments over 5 to 30 years. It's the most predictable of the loan options: same payment every month until it's gone.
But that’s the trade-off, too: there’s no flexibility. You start paying interest on the full amount immediately, whether you've spent it or not, and you take on a new monthly payment on top of your mortgage. And if your budget takes a hit, you still have to keep up with the monthly payment.
Cash-out refinance:
A first mortgage reset
A cash-out refinance replaces your existing mortgage with a new, larger one and gives you the difference in cash. Thirty-year refinance rates average about 6.7–6.8% as of July 2026 (cash-out pricing typically runs a bit above standard refis).
Here's the catch that matters most in 2026: a cash-out refi resets your entire mortgage to today's rate. If you're one of the tens of millions of homeowners holding a rate from 2020–2022 in the 3–4% range, refinancing your whole balance at ~6.8% to pull out some cash can cost far more in lifetime interest than the cash is worth. That's exactly the situation where second-lien options — a HELOC, home equity loan, or an Equity Sharing Agreement — leave your low first-mortgage rate alone.
That said, if your current rate is higher than today's market, you can lower it with a refi and access cash in one move.
Reverse mortgage:
A loan that pays you
A reverse mortgage (most commonly the FHA-insured HECM) lets homeowners age 62+ convert equity into a lump sum, monthly payouts, or a credit line, with no monthly mortgage payment. Interest accrues and compounds against your equity, and the loan comes due when you sell, move out, or pass away. HUD counseling is required, you generally need substantial equity (often 50+%), and any existing mortgage typically must be paid off at closing.
For younger homeowners, the age requirement takes this option off the table entirely. For eligible seniors, the comparison with an Equity Sharing Agreement often comes down to this: both eliminate monthly payments, but a reverse mortgage's balance is guaranteed to grow over time through compounding interest, while an Equity Sharing Agreement's repayment depends on your home's change in value.
If you plan to pay it off quickly or live in an area where home prices are projected to rise rapidly, a reverse mortgage may be more affordable. If you plan to stay in your home for a while, and/or expect low-to-moderate home appreciation, an Equity Sharing Agreement can be the more cost-effective option.
Which one is right for you?
There's no universally "best" product. But there is usually a clear fit for your situation:
- You want cash with no new monthly bill, while keeping your low mortgage rate — an Equity Sharing Agreement was built for exactly this.
- You want a flexible credit line and can handle that variable payments — a HELOC.
- You want one lump sum with a fixed, steady payment — a home equity loan.
- Your current mortgage rate is higher than today's rates — a cash-out refinance can solve two problems at once.
You're 62+ — compare a reverse mortgage and an Equity Sharing Agreement side by side; the right answer depends on your estate goals and time horizon.
And a general rule of thumb on cost: with any loan, your cost is the interest rate, and you pay it monthly, no matter what your home does.
With an Equity Sharing Agreement, your cost is a share of your home's future appreciation, paid once, years from now — which can work out to more or less than a loan depending on how your home's value changes. Neither is automatically cheaper; they're different options, suited to different budgets and plans.
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Frequently asked questions
Is an Equity Sharing Agreement a loan?
No. There's no interest rate, no monthly payment, and no debt added to your credit profile. Unison invests in your home and shares in its future change in value. Your only payment is based on the home's final market value due when you sell, buy out the agreement, or reach the end of the 30-year term. If you sell after the restriction period and your home has lost value, you could owe less than the amount you received up front. In cases of significant depreciation, Unison's final payment could even drop to zero.
Will an Equity Sharing Agreement affect my current mortgage rate?
No. Your existing mortgage and its interest rate stay exactly as they are. A Unison Equity Sharing Agreement is a separate agreement, secured by a lien recorded behind your first mortgage, which means it does not touch, modify, or replace your current home loan or its rate.
Do I still own my home with an Equity Sharing Agreement?
Yes, 100%! You continue to own the home, control the property and receive all the benefits of home ownership, such as occupancy rights and income tax deductions. While Unison becomes an investor in your home's future change in value, we are not at all a co-owner.
What are the costs associated with Unison?
For the Unison equity sharing agreement, Unison will deduct a 3.9% transaction fee from your agreement at closing.
Additionally, you are responsible for third-party costs such as appraisal and settlement costs (including title, state taxes, and recording fees). Appraisal fees generally range from $450 to $1,250, home inspection fees typically range from $650 to $1,050 and settlement costs range from $700 to $1,750, depending on your area. Your exact costs will be provided to you prior to closing.
In addition to our standard 3.90% transaction fee, customers who obtain an equity sharing agreement from Unison are responsible for the cost of their home inspection. (There is no home inspection fee for customers who choose not to work with Unison). If you happen to have a recent home inspection that meets standard criteria, let us know and Unison will consider using that one instead.
If you choose not to work with Unison, you will not be responsible for any fees. Additionally, Unison pays any cost of credit reporting, as applicable.
Does Unison share in the downside if my home loses value?
Yes. Unison is not a loan; we are invested in your home alongside you, so we win and lose together. Though such cases are not common, with significant decline in your home’s value–something neither of us are looking for!–it is possible that the value of the agreement, and your ending amount due to Unison, would be $0. It’s this feature along with the absence of any monthly payments that distinguishes an equity sharing agreement from a loan.
How much funding is available?
The most Unison can invest in a single home is $500,000 or 15% of your home’s current value, but most of our investments are less than that. Our minimum investment size is $30,000.
The exact amount we can invest depends on your unique situation. Please request a free estimate to see how much equity you’re able to unlock.
Can I buy out Unison's investment without selling my home?
Our goal is to give you as much flexibility as possible. If you chose to end the agreement without selling your home, we’ll use an independent third-party appraisal to determine the market value of your property at that time. You’ll then pay us the same amount you would have paid if you had simply sold your home for that appraised value.
The biggest difference is that Unison will not share in any loss in your home's value if you choose to buy us out. At a minimum, you'll owe the Initial Payment (plus our share of the 5% Risk Adjustment) even if your home appraises for less than it was worth at the start of the agreement.
Equity sharing agreements that originated after February 13, 2023 are eligible to Special Terminate at any time, but those that originated prior to this date must adhere to the Special Termination restriction period outlined in their individual agreements. If you are a current Unison homeowner with questions about your specific Special Termination guidelines, please reach out to our Home Partnership Team by calling 800-330-5800.
What happens if I'm still in my home after 30 years?
If you still own your home at the end of three decades, you will need to either buy us out or sell your home. In some cases, it might be possible to refinance your home to buy out Unison’s investment, but we can't guarantee this option will be available.
In which states are Equity Sharing Agreements available?
Unison equity sharing agreements are currently available in the following states:
Arizona, California, District of Columbia, Delaware, Florida, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New Mexico, New York, Ohio, Rhode Island, South Carolina, Tennessee, Utah, Virginia, Wisconsin.
We’re constantly working to bring Unison to more people. If we haven’t yet arrived in your state, check back later or let us know if you’d like to be alerted when we do.