Question 1

How does appreciation sharing work when I sell my Brentwood home?

Accepted Answer

The lender receives their agreed percentage of appreciation above the original value at closing. If your home appreciated $100,000 and the agreement is 40%, the lender receives $40,000 from sale proceeds.

Question 2

What happens if my home value decreases in Brentwood?

Accepted Answer

Most appreciation loan agreements only share gains, not losses. If your property value declines, you typically owe only the original loan amount plus interest without additional penalties.

Question 3

Can I refinance out of an equity appreciation loan early?

Accepted Answer

Yes, but you'll owe the appreciation share based on current appraised value. Early refinancing may trigger appraisal costs and require paying the lender's portion of any accrued appreciation.

Question 4

Are equity appreciation loans common for Brentwood buyers?

Accepted Answer

These remain specialized products used by specific borrowers seeking alternative financing. Traditional mortgages and HELOCs represent far more common choices for Brentwood homeowners.

Question 5

How do lenders calculate the appreciation percentage in Contra Costa County?

Accepted Answer

Lenders use professional appraisals comparing original loan value to current market value. The difference represents appreciation, and your contract percentage determines the lender's share of that gain.

Equity Appreciation Loans in Brentwood: Tap Into Your Home's Future Value