Question 1

How much equity do I share with the lender?

Accepted Answer

Typically 10-30% of future appreciation depending on rate reduction. Terms vary widely by lender and property type.

Question 2

Can I refinance out of an equity appreciation loan early?

Accepted Answer

Yes, but you'll owe the appreciation share based on current value. Early exit clauses add cost most borrowers don't anticipate.

Question 3

Do these loans work for investment properties in Burlingame?

Accepted Answer

Rarely. Most lenders restrict equity appreciation structures to owner-occupied primary residences only.

Question 4

What happens if my home value drops instead of appreciating?

Accepted Answer

You keep the rate benefit and owe nothing extra. Lenders absorb downside risk in exchange for upside participation.

Question 5

Are equity appreciation loans cheaper than HELOCs right now?

Accepted Answer

Sometimes at origination, but total cost depends on how much your home appreciates. Run scenarios for both products before deciding.

Equity Appreciation Loans in Burlingame: Leverage Future Growth for Better Terms Today