No, a HELOC or home equity line of credit is a loan that allows you to borrow against the equity you have in your home. Instead of receiving a lump sum, a HELOC provides access to a long-term revolving line of credit. You make payments and pay interest (usually a variable rate) on the amount you borrow.
In contrast, a home equity agreement (HEA) is not a loan. Through our HEA, Unlock provides a lump sum of cash (up to $500,000) in exchange for a portion of your home’s future value. There are no monthly payments and no interest charges. You can sell your home or buy out Unlock at any time, or you can buy out Unlock in partial payments whenever you want over the 10-year term without penalty.