Question 1

How much future appreciation do I give up?

Accepted Answer

Most Martinez deals share 20-35% of appreciation over the loan term. The exact split depends on how much cash you take and current equity position.

Question 2

Can I pay off the loan early?

Accepted Answer

Yes, but you typically owe the appreciation share calculated through the payoff date. Early exit in years 1-5 often triggers the highest recapture percentages.

Question 3

What happens if my home value drops?

Accepted Answer

You owe only the principal borrowed plus any minimum interest. Lenders absorb the appreciation risk if values decline or stay flat.

Question 4

Do these loans require mortgage insurance?

Accepted Answer

No. The lender's upside comes from appreciation sharing, not PMI. You need 20% equity but avoid monthly insurance premiums.

Question 5

Can I use this for a rental property in Martinez?

Accepted Answer

Most appreciation loan products require owner occupancy. A handful of lenders work with investment properties but take a larger appreciation share.

Equity Appreciation Loans in Martinez: Tap Future Value Today