Pricing & Terms
We believe in complete transparency. Here's exactly what a Home Equity Agreement costs and how your settlement amount is calculated.
Get My Free EstimateUpfront Costs
These are the costs associated with your Home Equity Agreement. Most fees are deducted from your investment amount at closing, so you don't pay out of pocket.
Transaction Fee
4.5%One-time fee deducted from your investment proceeds at closing. It is financed out of the proceeds rather than paid out of pocket, so it reduces the cash that reaches you.
$4,500 on $100,000 of investment proceeds
Third-party closing costs
$2,215 avg.Title, escrow, recording and appraisal, charged by third parties and deducted from your investment proceeds separately from the Transaction Fee. A real file varies.
Program average; your file may differ
Monthly Payments
$0There are no monthly payments with a Home Equity Agreement. A Final Settlement Amount based on your home's value at that time is due at the end of the Investment Period or upon sale or refinance. In a high-appreciation scenario, this amount may substantially exceed the investment proceeds received.
None required during the term
No Ongoing Costs
After closing, there are no monthly payments and no additional fees during the life of your investment. A Final Settlement Amount based on your home's value at that time is due at the end of the Investment Period or upon sale or refinance. In a high-appreciation scenario, this amount may substantially exceed the investment proceeds received. You settle when you sell, refinance, buy out the investment, or reach the end of term.
How Settlement is Calculated
At settlement, Mend receives an agreed-upon percentage of your home's total value at that time. If your home appreciates, you pay more; if it decreases, you pay less.
All three scenarios below settle at the end of a 10-year Investment Period. How long you hold the Agreement changes the outcome more than any other factor, because the amount due is a share of your home's value at settlement, not a fixed sum. Settling in year three and settling in year ten produce very different numbers from the same starting position.
The Settlement Formula
Home Value at Settlement
$650,000
Value Share Percentage
20%
Settlement Amount
$130,000
Illustrative only, over a 10-year Investment Period: the increase scenario assumes the home is worth 30% more at settlement than at the start (about 2.7% a year), and the decrease scenario assumes it is worth 15% less. Your Agreement states your own Investment Period and Settlement Multiplier.
*These examples are for illustration only, and assume settlement at the end of a 10-year Investment Period. Actual terms, Investment Period length, value share percentages, and outcomes vary based on individual circumstances and market conditions. A shorter or longer hold changes the amount due at settlement.
Key Terms to Understand
Value Share
This is the percentage of your home's future value that Mend receives at settlement. The exact percentage depends on your home's value, the investment amount, and other factors. Typical ranges are 15-40%. We'll provide your specific terms before you commit.
Investment Term
The maximum duration of your Home Equity Agreement is typically 10 years. However, you can settle at any time before then, when you sell, refinance, or choose to buy out the investment early. There are no prepayment penalties.
Risk Adjustment Cap
Some HEAs include a risk adjustment that affects the value share calculation. We'll explain exactly how this works for your specific situation and provide clear examples of potential outcomes.
Home Maintenance Requirements
As a homeowner, you're expected to maintain your property in good condition, keep current on property taxes and insurance, and not take on additional debt secured by the property without approval. These are standard requirements similar to any mortgage.
Get Your Personalized Terms
Every homeowner's situation is unique. Check your eligibility to see the specific terms available for your home.
The information provided on this page is for educational purposes only and does not constitute a loan offer or commitment. Actual fees, terms, and value share percentages vary based on individual circumstances including property location, home value, equity position, and other factors. All Home Equity Agreements are subject to underwriting approval. You will receive complete terms and disclosures before signing any agreement. Past performance does not guarantee future results. Home values can decrease as well as increase.