If you’re a homeowner feeling the pinch of high monthly bills or rising interest rates, you might have assumed that using your home’s equity automatically means taking on more debt.
Traditional “second mortgage” options like HELOCs or home equity loans often bring larger monthly payments, stricter qualifications, and added stress – which isn’t what you need when cash flow feels tight.
That’s why more homeowners are exploring alternatives like Unison’s equity sharing agreement. It’s a way to access a portion of your home’s equity without taking on a loan. The innovative structure makes it a compelling option for those prioritizing short-term relief, financial breathing room, or a reset to get back on track.
Why Traditional Equity Options Can Be Challenging Today
With rates rising and monthly expenses already high, many homeowners find that the math for traditional borrowing just doesn’t work anymore. HELOCs come with variable rates that can increase unexpectedly, home equity loans add a new monthly obligation, and cash-out refinances in today’s market often replace a lower existing mortgage rate with a higher one – sometimes adding hundreds or even thousands of dollars to the monthly bill.
In other words, tapping equity through a traditional loan can relieve one financial stress… while creating another. For households trying to balance debt, renovations, or unexpected life expenses, this can feel like a step backward.
How a Home Equity Sharing Agreement Provides a Different Path
With Unison’s equity sharing agreement, you can access equity today with no monthly payment and no interest. Instead of a loan, Unison becomes a partner in your home’s future value. You receive funds upfront, and when your home is sold or refinanced, or the agreement ends, Unison shares in the home’s appreciation. And if your home depreciates, Unison typically shares in the loss, too.
This structure allows homeowners to solve immediate financial challenges without increasing monthly obligations. It’s particularly appealing for those who need short-term relief from high-interest debt, want to fund home repairs or renovations, or need flexibility during a financial transition.
Who Typically Benefits from an Equity Sharing Agreement
Homeowners who find an ESA to be most impactful are typically those focused on tangible, immediate relief. Common scenarios include:
- Consolidating high-interest credit cards or personal loans
- Covering large, unexpected expenses
- Funding essential home repairs or renovations
- Avoiding refinancing into a higher-rate mortgage
In these situations, the ESA can provide the breathing room households need without adding pressure to monthly budgets.
When an ESA Might Not Be Right
Equity sharing isn’t perfect for every homeowner. It may not be the best choice if:
- You plan to sell your home soon
- You want the steady monthly payments of a traditional loan, rather than one large payment later
- You prefer to maximize long-term equity rather than reduce monthly obligations
For many households, however, equity sharing strikes the perfect balance with up-front cash, the flexibility to use it how you want, and a partner that’s aligned in seeing your house grow in value – a win for both sides. It’s a modern alternative to (but not a replacement for) traditional borrowing.
Final Thoughts
Tapping your home’s equity doesn’t always have to mean taking on more debt. For homeowners facing high monthly payments, rising rates, or immediate financial pressures, Unison’s equity sharing agreement offers a flexible, interest-free way to access cash today. It’s a tool designed for real-life situations and a smart option for those who need breathing room or a financial reset to get back on track.
And with Unison, you have a true partner in the process – transparent, supportive, and aligned with your homeownership goals. If you're ready to explore how equity sharing can work for you, start with a quick eligibility check (with zero impact on your credit!) or learn more at Unison.com.
Disclaimer: This sponsored content is for informational purposes only and is not financial, legal, or tax advice. Unison’s Equity Sharing Agreement (ESA), offered through Unison Agreement Corp., provides cash upfront with no monthly payments or interest charges. In exchange, you share a percentage of your home’s future appreciation (or a limited portion of any depreciation) when the agreement ends (upon sale, refinance, buyout after 5 years, 30-year term, or death/default). If your home depreciates, Unison typically shares in a portion of the loss, subject to program limits—you may still owe the full advance amount. A lien is placed on your property, which may limit future refinancing options. There may be tax implications (e.g., potential recognition of income on forgiveness of advance if the home depreciates). No guarantees are made regarding home value changes or outcomes. For complete terms, eligibility, and details, visit unison.com. For traditional lending products, see Unison Mortgage Corp., NMLS #2574289. Always consult your own financial, legal, and tax professionals before proceeding.