How to pay back your HEI: Re-Point

If you’ve gotten an HEI from Point, you know how convenient it can be. Being free from monthly payments allows you to use those funds for other purposes today — but what if you want to get additional funds from your home or extend your HEI’s term length?

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If you’re happy with your current HEI but wish you could use it again, there’s good news: you may be able to do so with a Re-Point. It’s Point’s version of an HEI refinance, similar to how you might swap out your mortgage in order to get access to improved pricing or tap into more equity. We’ll walk you through how it works and help you decide if it’s a good option for you.  

Re-Point: an overview

You’ll be building additional equity in your home as you pay down your mortgage and (hopefully) watch your property value rise over time. If you need to take out additional funds in the future, a Re-Point HEI lets you repeat the process again, this time allowing you to access additional funds against your increased home equity. 

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A Re-Point HEI pays off your first HEI in the process, thereby streamlining your accounts so that you only have one larger HEI to manage instead of two separate HEIs. Aside from that, it works the same: in 30 years — or before, if you choose — you’ll need to pay back the funds you received, plus a portion of your home’s equity appreciation.  

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A Re-Point HEI can be a useful tool to tap into more of your home equity, but you can also use it to repay your current HEI when its term comes to an end. Many people are nearing the end of HEIs with 10-year term lengths from earlier in Point’s history and this can be a particularly useful option if you’re happy with the way things have been going. 

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Point isn’t the only company that offers HEIs, and you're free to scope out your options among other HEI providers. However, Point offers several advantages if you remain a partner, such as waiving any appraisal fees at application. Point also makes sure that each homeowner mutually benefits from doing a Re-Point, such as making sure you can get  additional cash out or improve your pricing on your new Re-Point HEI over your current contract. 

Pros and cons of a Re-Point

It’s a good idea to speak with a financial advisor before you make any big money moves. However, here are the things you’ll want to consider before opting for a Re-Point over your other choices:

Pros of Re-Point

• No monthly payments: Just as with your current HEI, you can continue on with a similar arrangement that requires zero monthly payments. That frees up more of your monthly cash flow for other things. 
• Access additional cash: You can use this opportunity to unlock additional funds for anything, such as sending your kids to college or renovating your home. If your home has increased a lot in value, you could access a larger amount of cash. 
• New 30-year term: Rather than scrambling to repay your HEI now, you’ll get three more decades before you have to worry about making a decision again. Plus, you still have the option to repay your Re-Point at any time before then. 
• Appraisal fee waived: Point waives the appraisal fees at application if you’re already a customer and choose to apply for a Re-Point HEI. This is to reward you for choosing to work with Point again, which may not be offered by other HEI providers. 

Cons of Re-Point

• Less future equity: Taking out a larger HEI now means that you may need to repay more in the future. Conversely, if you choose to repay your HEI instead of opting for Re-Point, you’ll have access to all of your future equity. 
• Equity requirements: You'll need to maintain at least 30% equity in your home after you repay your existing HEI and take out additional funds for yourself.  

Is a Re-Point the right fit for you?

There are many options for paying back your HEI. A Re-Point may be a good choice for you, but it’s not for everyone. Here are some questions to ask yourself:

Do you like your current HEI?

If you’re already happy partnering with Point but you’re just not ready to part ways yet, you may already have your answer. Make sure to compare all of your options first, however, so you can be more confident in your decision. 

Do you need additional funds?

Many people don’t take out the full amount offered to them with their first HEI, leaving room to unlock more equity later. In addition, if your home equity has grown since you applied for your first HEI, you may be able to access additional funds with a Re-Point. This can be an easier-to-manage option for your monthly cash flow, especially compared to other options like a home equity loan or refinance.

Do you plan on staying in your home?

A Re-Point gives you plenty of breathing room with its 30-year term length, but it’s a good idea to have a rough sketch of how you’ll repay your new HEI in the future. No one has a crystal ball that can project 30 years out, but if your home value increases by a lot, you may need to repay a larger amount further down the road, too.

Steps to obtain a Re-Point option

If you’re ready to investigate a Re-Point further, here’s a good strategy for making the most out of your new partnership. 

Step 1: Check your other options

If you’re looking to get more funds, consider whether a financing option such as a home equity loan or even a personal loan would work better for you — especially if your creditworthiness has improved since you first took out your HEI. If you’re simply looking to repay your current HEI when its term length comes to an end, make sure you investigate all of your HEI repayment options fully: 

• Selling your home
• Using cash savings
• Borrowing money via a HELOC, home equity loan, reverse mortgage, or cash-out refinance

Step 2: Check your eligibility for a Re-Point HEI

Feel free to reach out to the Point customer care team at any time to investigate your options. A representative can help you check your eligibility for a Re-Point HEI and provide you with updated payoff information. This doesn’t obligate you to get a Re-Point, but it can provide you with specific, personalized information to help you make a more informed decision about whether a Re-Point HEI is right for you. 

Step 3: Begin your Re-Point application

Once you’re ready to proceed, the process will work basically the same as your current HEI. You can reach back out to Point’s customer care team via email or telephone to begin applying for your Re-Point HEI. You’ll need to fill out an application to get the process started, and Point’s team will handle it from there. Make sure to stay in touch in case Point’s team has any questions or information along the way. 

Step 4: Get an updated appraisal

Point will order a new appraisal for your home in order to generate an accurate number for how much you’ll need to repay for your current HEI, along with how much cash you can access with your new Re-Point HEI. The good news is you won’t have to pay anything since Point will foot the bill for the appraisal process. 

Step 5: Close on your new HEI

After the appraisal results come back and the contract is drawn up, all you’ll need to do is sign the forms to close on the HEI. Point waives appraisal fees for Re-Point applicants as well, which will save you some money. If you opted to receive cash out, Point will send the funds to you.  

Final thoughts

A Re-Point may be one of the strongest tools in your wallet if you’re looking to get additional funds or repay your current HEI. You’re already familiar with how HEIs work, so you’ll know what to expect along the process — minus the appraisal fees. 

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As always, Point recommends talking to a fiduciary, fee-only financial advisor to help you make an informed decision. For many people, however, a Re-Point HEI offers the perfect solution if you’re happy with your HEI but just need additional time or funds to enjoy your life more right now.