Settlement Options
With a Home Equity Agreement, repayment is deferred, but it's not avoided. Here's when and how settlement occurs, and what your options are.
Get My Free EstimateFour Ways to Settle
Settlement can occur through any of these events. You choose the timing that works best for your situation.
Sell Your Home
When you sell your home, the settlement amount is paid from the proceeds at closing.
- Settlement is handled through escrow
- Mend is paid directly from sale proceeds
- Remaining equity goes to you
- No out-of-pocket payment required
Example: You sell your home for $650,000. Mend's settlement amount of $117,000 is deducted at closing, and you receive the remaining equity.
Refinance Your Mortgage
Use proceeds from a mortgage refinance to settle your Home Equity Agreement.
- Cash-out refinance can cover settlement
- Continue living in your home
- Convert to traditional mortgage debt
- May be advantageous if interest rates are favorable
Example: You refinance your mortgage and take cash out. Part of the refinance proceeds are used to settle with Mend.
Buy Out the Investment
You can choose to settle at any time using your own funds; there's no prepayment penalty.
- Settle anytime during the term
- No prepayment penalties
- Use savings, investments, or other funds
- Get a current settlement quote from Mend
Example: After 5 years, you decide to buy out Mend's investment using savings. You request a settlement quote based on current home value.
End of Term
If you reach the end of the investment term (typically 10 years), settlement becomes due.
- Standard term is 10 years
- We'll contact you well in advance
- Multiple settlement options available
- Extensions may be possible in some cases
Example: After 10 years, the term ends. You'll work with Mend to determine the best settlement approach based on your situation.
How Settlement Amount 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.
If Your Home Value Increases
If Your Home Value Decreases
*These examples are for illustration only. Actual terms, value share percentages, and outcomes vary.
Common Settlement Questions
What happens if I die before settling?
Your heirs or estate will be responsible for settlement. They can sell the home, refinance, or pay the settlement amount using other funds. The investment is tied to the property, not to you personally.
Can I make partial payments over time?
The Home Equity Agreement is designed as a single settlement event. However, if you're approaching the end of term and have concerns, contact us to discuss your options.
What if I can't afford to settle at end of term?
We'll work with you well before the end of term to explore options. This may include selling the home, refinancing, or discussing other arrangements based on your specific situation.
How do I get a settlement quote?
Contact our homeowner support team at any time to request a current settlement quote. The quote will be based on your home's current estimated value.
Have questions about settlement?
Our team is here to explain your options and help you understand exactly what to expect.
Settlement terms and options may vary. The examples provided are for illustration purposes only and do not represent actual terms or guarantees. Your specific settlement amount will depend on your original investment terms and your home's value at the time of settlement. Contact Mend for a personalized settlement quote.