Question 1

How much appreciation do I typically share with the lender?

Accepted Answer

Most lenders take 20-35% of appreciation when you sell or refinance. Exact percentages depend on your initial loan-to-value ratio and term length.

Question 2

Can I refinance out of an equity appreciation loan early?

Accepted Answer

Yes, but you'll owe the lender their appreciation share based on current appraised value. Prepayment triggers the same calculation as selling.

Question 3

What happens if my Tiburon home decreases in value?

Accepted Answer

You owe nothing beyond your original loan amount. The lender absorbs the loss, which is why they're selective about locations.

Question 4

Do these loans make sense for Tiburon's luxury market?

Accepted Answer

Rarely. Higher-value homes have better conventional options. Appreciation loans work best when you need payment relief and expect strong gains.

Question 5

How do lenders calculate future appreciation in Tiburon?

Accepted Answer

They analyze historical trends, location-specific factors, and comparable waterfront markets. Your specific property's features drive the projection model.

Equity Appreciation Loans in Tiburon: Leverage Your Home's Growth Potential