Let’s look at an example that illustrates what your numbers might look like if you bought a home 30 years ago:
- You purchased a home in 1987
- You paid $1,000,000
- You put in a 10% down payment
- Unison put in another 10% (for a total down payment of 20%)
- Your mortgage rate was 4.0%
- Your home saw an average amount of appreciation (based on data from the Federal Reserve)
The graph below shows how much equity you would gain and how much you would share with Unison over this 30-year time period. As you can see, both your equity and Unison’s share increase when the home increases in value. However, your equity also grows when you make your mortgage payments every month.