HEA vs HELOC | Which One Costs Less Over Time

Discover how a home equity agreement compares to a HELOC on costs, repayment structure, flexibility, approval requirements, and which option fits different goals.
👉 Get Point Home Equity ➜ https://bit.ly/3Zfrw0o
💥EXCLUSIVE DISCOUNT AUTOMATICALLY APPLIED💥

Timestamp Sections:
00:00 Intro
00:43 About HELOC
01:16 About HEA
01:49 Fees & Interest
02:50 Risks
03:53 Ideal Users
04:41 About Point
05:56 Bottom Line
06:41 Outro

------------------------------------------------
HELOC vs HEA – How Each One Works
------------------------------------------------

In this video, I compare two very different ways to access your home equity: a traditional HELOC and a newer option called a Home Equity Agreement (HEA). While both let you unlock cash from your home, they operate in completely different ways. A HELOC is a bank-issued line of credit with variable interest rates, monthly payments, and a repayment phase that can kick in regardless of your financial timing—putting your home at risk if things go wrong. An HEA, by contrast, works more like a partnership: you receive a lump sum upfront with no interest, no monthly payments, and no income requirements, and you settle later by sharing a portion of your home’s future value when you sell or refinance. The flexibility is appealing, but the real cost isn’t fully known until years down the line.

------------------------------------------------
The Real Cost & Hidden Risks
------------------------------------------------

Both options have a price—you just feel it at different times. With a HELOC, interest starts accruing immediately, and once the draw period ends, payments can jump sharply, especially if rates rise. This can be manageable with stable income, but risky if your budget is tight or unpredictable. HEAs feel lighter at first since there are no payments, making them helpful for paying off high-interest debt or covering urgent expenses, but they reduce your future sale or refinance proceeds. There are also risks on both sides: HELOCs can affect your ability to refinance and may be frozen or called due if your credit or home value drops, while HEAs can involve less regulation, vague settlement terms, and potential friction if you need to exit early. When life changes, those fine details matter more than most people expect.

------------------------------------------------
Who Each Option Is Best For (and Why Point Stands Out)
------------------------------------------------

A HELOC generally works best for homeowners with strong credit, reliable income, and a clear repayment plan who are comfortable managing variable rates. An HEA can be a lifeline if your credit isn’t perfect, your income fluctuates, or you need access to equity without adding monthly pressure—even if it costs more later. That’s where Point stands out, because they offer both options with fewer pain points. Their Home Equity Investment provides upfront cash with no monthly payments, no income requirements, and shared downside risk if your home value drops. Their HELOC, on the other hand, avoids the sharp payment shocks many banks impose after the draw period. Whether you’re trying to stabilize your finances now or plan carefully for the long term, Point is designed to be more realistic than most traditional lenders.

Hope you enjoyed my HEA vs HELOC | Which One Costs Less Over Time Video.