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 20% down payment
- Your mortgage rate was 4.0%
- After 13 years (year 2000), your home value was appraised at $1.6 million. Unison invested 10% of the value of your home, in exchange for 40% of your home’s future appreciation
- Unison’s investment payment to you was $160,000 minus any fees.
- Your home saw an average amount of appreciation (based on data from the Federal Reserve)
This graph 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.