Question 1

How much appreciation do I share with the lender?

Accepted Answer

Typically 10-50% depending on the rate reduction you receive. Higher equity splits mean lower rates or better upfront terms.

Question 2

What happens if my home value drops?

Accepted Answer

Most agreements protect you from sharing losses. You still owe the original loan amount, but won't owe extra if the home depreciates.

Question 3

Can I refinance out of an equity appreciation loan?

Accepted Answer

Yes, but you'll owe the lender their appreciation share at payoff. Refinancing triggers the same settlement as selling the home.

Question 4

Do these loans work for Patterson investment properties?

Accepted Answer

Rarely. Most equity appreciation products require owner occupancy. Investment property versions exist but carry much stricter terms.

Question 5

How is appreciation calculated at sale?

Accepted Answer

Sale price minus original appraised value equals gain. The lender receives their contracted percentage of that difference at closing.

Equity Appreciation Loans in Patterson: Leverage Future Value Today