How Some Homeowners Are Lowering Payments — Without Refinancing

If you’ve built up equity in your home, you may qualify for a solution that helps lower your monthly payments — without refinancing your mortgage or taking on high-interest debt. It’s not available to everyone, but for eligible homeowners, it can offer a more flexible way to fund big expenses or simply free up cash each month.

Unison’s Equity Sharing Home Loan takes a different approach than traditional second mortgages. Here’s how it works — and how it compares to other options for using your home equity.

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Traditional Ways To Tap Into Home Equity

There are several well-known methods for accessing home equity, including:

Home Equity Line Of Credit (HELOC): A HELOC lets you draw funds as needed, using your home as collateral. It offers flexibility but often comes with variable interest rates and a repayment phase that can strain your budget.

Home Equity Loan: A fixed lump sum with predictable monthly payments. However, this "second mortgage" typically comes with high interest rates, upfront fees and strict repayment terms.

Cash-Out Refinance: This replaces your existing mortgage with a new one at a higher amount. While it may offer favorable interest rates, it resets your mortgage clock and may not lower your monthly payments.

Each of these can serve a purpose, but they also involve more debt, compounding interest and potentially higher monthly obligations.

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A Smarter Way: Unison’s Equity Sharing Home Loan

Unison’s Equity Sharing Home Loan is not your typical second mortgage. Instead of compounding interest and large monthly payments, Unison offers a 10-year, interest-only loan with below-market rates and no prepayment penalties.

Here’s how it works:

• You receive a lump sum upfront (up to $400,000 or 35% of your home’s value, depending on location)
• You make low, interest-only payments each month — typically just 75% of the monthly interest, with the remaining 25% deferred
• At the end of the 10-year term (or if you sell/refinance), you repay the principal, deferred interest and a fixed share of your home’s future appreciation

Unison essentially co-invests in your home, meaning they only win when you do. This structure gives you breathing room in your monthly budget now, while aligning both parties’ long-term interests.

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Who Qualifies?

This program isn’t for everyone — and that’s by design. To qualify, you’ll typically need:

• At least 30% equity in your primary residence
• A FICO score of 680 or higher
• A commitment to maintaining your home as a long-term investment

This selective model ensures the program supports financially responsible homeowners who can benefit most.

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Why Homeowners Are Choosing This Approach

Unison's Equity Sharing Home Loan can be a great fit if you:

• Want to lower your monthly payments without refinancing your first mortgage
• Prefer a lower-stress borrowing option with no ballooning interest
• Are comfortable sharing in your home’s future appreciation in exchange for flexibility today
• Need funds for major expenses like renovations, business ventures, or consolidating debt

It’s a forward-thinking way to access what you’ve built — with less pressure month to month.

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Put Your Equity to Work — Without Overextending Yourself

Your home is one of your most valuable assets. Unison helps you leverage it in a way that’s mutually beneficial, giving you financial freedom now and sharing in your home’s future gains later.

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Curious if you qualify? Contact Unison to learn more and explore your options.

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Disclaimer: This article is sponsored by Unison and provides general consumer information only. It is not financial, legal, or investment advice. Consult a qualified professional before making decisions about home equity products. Borrowing against home equity involves risks, including increased debt, potential loss of equity if property values decline, and foreclosure if payments are not made. Unison’s Equity Sharing Home Loan requires a minimum FICO score of 680, at least 30% home equity, and other eligibility criteria; repayment includes the original amount, deferred interest, and a share of future home appreciation. Terms and availability vary by location. Contact Unison for details. This article contains links to third-party websites, which we do not endorse or control. Access these links at your own risk. Statements about home value appreciation are forward-looking and based on assumptions; actual results may vary.