Point Home Equity Investment: Legit Or A Scam?

Point is a legitimate home equity investment company that has been in business since 2014 and is BBB-accredited. It offers an alternative way to access equity in your home without taking on debt. Point's home equity investment product offers customers a lump sum of cash in exchange for a portion of their home's equity. The company has received largely positive reviews, with an average rating of 4.28 out of 5 stars on the BBB website and an Excellent rating on Trustpilot. However, there are some risks and fees associated with Point's product, including a significant risk adjustment that reduces the appraised value of your home.

Point's home equity investment (HEI)

With HEI, you receive a lump sum of cash in exchange for giving up a portion of your home's equity. This means that you get to access the cash tied up in your home without having to make any monthly repayments for the entirety of your 30-year agreement with Point. There are no monthly payments, and you can choose to exit the partnership before the full term by buying back the equity.

Who Is It For?

HEI is ideal for those who need cash but can't qualify for a traditional home equity loan or refinance due to income requirements or low credit scores. It is also a good option for those who want to avoid the burden of monthly payments and interest charges that come with traditional loans.

The main advantage of HEI is that it provides a way to access your home's equity without adding to your debt load or monthly expenses. It also has flexible requirements, with no need for a high credit score or income, and you retain full ownership and control of your home.

However, one of the significant disadvantages is that you surrender a portion of your home's equity, which means you might not be able to take full advantage of its value if it appreciates. Additionally, Point applies a risk adjustment, lowering your home's appraisal value by up to 25%, which further reduces the equity you can access.

Customer Reviews and Ratings

Point has received generally positive reviews from its customers, with an "Excellent" rating on Trustpilot and an A+ rating from the Better Business Bureau (BBB). Customers have praised the company for its helpful and efficient customer service, straightforward process, and flexibility. However, some negative reviews mention a longer-than-expected process to receive funds and high costs associated with early repayment.

Pros and cons of Point's HEI

Pros of Point HEI:

• No monthly repayments, giving homeowners breathing room.
• Flexible requirements with no need for a high credit score or any income.
• Early repayment flexibility with no penalties.
• You retain full ownership and control of your home.
• No restrictions on the use of funds.
• Access to a large lump sum of cash.
• Second properties can be eligible.

Cons of Point HEI:

• You'll owe Point a piece of your home's value.
• Point applies a significant risk adjustment to your home's initial appraised value.
• No renovation or remodelling adjustment. Point won't exclude the value of renovations you complete from the amount you owe.
• Limited availability. Services are available in only 24 states.
• Longer application timeline.
• Not available for every location/property type.

How Point compares to its competitors

Point is a legitimate home equity company that has been in business since 2014 and is BBB-accredited. It offers an alternative way to access equity in your home.

Point vs. Hometap

Hometap is one of Point's direct competitors. Hometap received a higher editorial rating and higher customer ratings. It also offers a wider investment range, accommodating homeowners looking for a smaller or larger investment. Hometap's term length is set at 10 years, compared to Point's 30-year term. Hometap also does not have a risk adjustment, unlike Point, which reduces the appraised value of your home by 15-20%.

Point vs. Unlock

Unlock is Point's other direct competitor. It offers more repayment flexibility than Point, allowing homeowners to make partial payments throughout the term instead of a single lump sum. Unlock also has a shorter term of 10 years, which is appealing for those wanting to avoid a long-term arrangement.

Point vs. Figure

Figure offers a range of financing products, including HELOCs, personal loans, and mortgage refinancing. Compared to Point, Figure offers a higher loan-to-value ratio, allowing you to access up to 85% of your home's value versus 80% with Point. Figure also has a smaller minimum payment, more term choices, and lower rates.

Point vs. LendingTree

LendingTree is a marketplace that connects you with a wide range of lenders, allowing you to compare various home equity loan and HELOC offers. This helps you find the best rates and terms for your specific needs.

Point vs. Unison

Unison is another competitor that offers a 30-year term option, but it does not invest in rental properties, unlike Point. Unison also has a five-year restriction period where they do not share in any loss of value if you opt for a buyout.

Point's customer service

• Via email by filling out the contact form on the Point website.
• For servicing needs, call 650-632-5040 (8 a.m. – 6 p.m. Pacific).
• For general inquiries, call 888-764-6823 (8 a.m. – 6 p.m. Pacific).

The customer service team is available to answer any questions and address any concerns. Point's customer service has been described as "helpful and efficient" by customers on Trustpilot and the Better Business Bureau (BBB). The company has an "Excellent" rating of 4.6/5 on Trustpilot and an A+ rating from the BBB.

The application process with Point is straightforward. The company offers the advantage of letting customers pre-qualify for a home equity investment, which won't negatively impact their credit score. The initial pre-qualification can be almost instant, while the appraisal and loan issuance can take several weeks.

• Start pre-qualification by clicking "Pre-qualify now" on Point's website and entering your home address.
• Estimate the home value by inputting the home's value and comparing it to available Zillow estimates.
• Review the offer provided by Point.
• Complete the full application and submit the required documents, which may include mortgage statements and proof of ownership.
• A home appraisal will be scheduled to assess the home's current market value.
• Upon a successful appraisal and review, the home equity investment will be issued.

If you are denied a home equity investment from Point, you will be informed of the reasons for the denial, and you can work on addressing these issues. Common reasons for denial include low home value, poor credit score, and property location.

How to apply for Point's HEI

Applying for Point's Home Equity Investment (HEI) is a simple process that can be done online. Here is a step-by-step guide on how to apply:

• Prequalification: Visit Point's website and click on "Prequalify now". Enter your home address and estimate its value using Zillow estimates. You will then receive an initial offer from Point, which you should review carefully.
• Complete the application: If you are happy with the offer, proceed to complete the full application by submitting the required documents. These may include mortgage statements and proof of ownership.
• Home appraisal: Point will schedule a home appraisal to assess the current market value of your home.
• Funding: Once the appraisal and review are successfully completed, Point will issue the HEI.

It is important to note that the time each step takes may vary. While the initial prequalification can be almost instant, the appraisal and funding could take several weeks. Therefore, it is recommended to have all your documents in order to expedite the process.

Additionally, Point offers a pre-approval option, which allows you to find out if you are eligible for the HEI on the same day without affecting your credit score. This can be helpful if you want to know your terms before proceeding with the full application.

Frequently asked questions