Hometap vs. Point [2025]: Which Is Best for Home Equity Investment?

Hometap vs. Point

Here's an overview of how Hometap compares to Point.

Equity amount available	Maximum of $600,000	Maximum of $500,000
Fees	3% of investment plus third-party fees, including the cost of a home appraisal	3.9% of the investment subject to a $2,000 minimum. Fees also include third-party fees such as title, appraisal, and recording fees.
Term	Up to 10 years	Up to 30 years
Max loan-to-value ratio (LTV)	75%	73%
Credit score needed to qualify	500 (typically over 600)	500
Prepayment penalty	None	None
	Visit Hometap	Visit Point

When choosing Hometap is a better idea

Both Hometap and Point offer a financial product that's relatively new industry-wide. They are among a handful of companies offering home equity investment (HEI) as an alternative to home equity loans or home equity lines of credit (HELOC).

While there are many differences that we'll go into below, Hometap distinguishes itself from Point primarily in the amount of cash you're able to access and the timeline on which you're expected to either sell your home or buy out the investment.

Because of this, it could be the better choice for those who are looking to put money into renovating their home and plan to sell on a relatively short timeline. But, in general, you should choose Hometap if:

You need a slightly larger amount of cash

Hometap allows homeowners to tap into up to 25% of their home's value minus any outstanding loans, versus Point's 20% max. On a $500,000 home, that's a difference of $25,000. This can make a tremendous difference if you have big plans for the funds.

You have short-term plans to sell your home

The term for Hometap is only ten years. While that doesn't mean you must sell your house at the ten-year mark, you will have to make a decision. You can either sell the house before then or buy out the investment by taking out a home equity loan or using your savings.

If you don't have plans to move within the next ten years, you should consider your alternatives because borrowing money to buyout the investment could be expensive and challenging.

You want to improve your home in the future

If you have big dreams and plan to renovate your home, the Hometap doesn't take any share of the appreciation that has to do with home renovations, according to the home appraiser. This is good news if you plan to make major improvements that have a good ROI.

When it makes more sense to choose Point

Because of the duration of its terms and its borrowing limits, Point may be a better choice for homeowners who hold a greater share of equity in their home — ideally 100% — and aim to stay put for a longer amount of time.

Point may be the better choice for homeowners who bought their home outright or those who have paid off their mortgage and have no liens against the property.

You should choose Point if:

You have longer-term plans

Point doesn't require repayment for 30 years, which gives you a much longer timeline to decide what to do with your house. If you don't have short-term, concrete plans to sell your house, Point allows you the opportunity to tap into your home's equity without feeling forced to sell it soon or get another loan.

You live in an area not covered by Hometap

Point has a wider geographic footprint than Hometap. While neither is available in all 50 states, Hometap is available in 17 states and Washington, D.C., and Point is available in 26 states and Washington, D.C.

Key differences between Point vs. Hometap

While their basic service is very similar, there are some distinct differences when comparing Hometap vs. Point.

Term of contract

Hometap has a 10-year term, while Point has a 30-year term, providing more time for homebuyers to repay the money.

Winner: Point because you get much more time to decide what to do with your house moving forward.

Maximum investment amount

You can get up to $600,000 from Hometap, while Point has a maximum of $500,000. Hometap lets you access up to 25% of the value of your home, while Point requires that you retain at least 20% equity after they purchase their stake.

Winner: Hometap because they have more lenient guidelines regarding how much cash you can get.

Transaction fees

The fees for Hometap are 3.5% plus closing costs, while Point charges 3.9% plus closing costs with a $2,000 minimum.

Winner: Hometap because its fees are a bit lower.

Other options to consider if you don't want to sell your equity

If selling a portion of your home's equity doesn't feel right, here are a few other legitimate options to consider.

• Cash-out refinance. Homeowners can refinance their homes and access additional cash by obtaining a new mortgage for an amount that exceeds their current mortgage balance. This increases the loan amount, but payments might be the same or lower by resetting the 30-year term and locking in a lower interest rate. Speaking with a mortgage broker to show you how to get a loan through a cash-out refi could be the perfect choice for homeowners with a high-interest-rate mortgage.
• Take out a HELOC. Home equity lines of credit provide renewable access to your home's equity. HELOCs act like a credit card where draws reduce your available credit, and payments restore your borrowing capacity. Plus, you only pay interest on the amount borrowed. HELOCs could be better than home equity loans if you don't know how much you need to borrow or want the flexibility of interest-only payments.
• Use a home equity loan. A home equity loan is a one-time loan against your equity that is repaid over a specified period of time. Interest rates and monthly payments are generally fixed for the life of the loan. Home equity loans could be the best option for homeowners who want a simple monthly payment and defined payoff period.
• Take out a reverse mortgage. A reverse mortgage helps homeowners age 62 and older access their equity. The homeowner receives payments based on their home equity and no longer needs to make mortgage payments. You repay the loan once you are no longer living in the home.

FAQs

Bottom line

Tapping into your home's equity can help you pay down high-interest debt, make home renovations, pay for college expenses, and more. Selling a portion of your equity to an HEI company is a unique approach to tapping a homeowner's equity.

For many homeowners, this solution can be appealing because it offers access to equity today without requiring monthly payments. With origination fees starting at 3% and forfeiting a percentage of your home's growth in value, this financing could be an expensive option.

I recommend that, before making a decision on Hometap vs. Point, you compare your different borrowing options like those above to make the right choice. These options may be less expensive with lower upfront costs and without requiring that you share in your home's appreciation.