Roll-out comes at a time when the state is seeing rapid acceleration in home values
Hometap, which offers “loan alternatives” that allow homeowners to tap into their home equity without taking on debt, has extended its operations into Utah.
The company said that the launch is timely, given the recent spike in interest rates for cash-out refinancing and home equity line of credits (HELOCs). The typical home value in the state grew to $529,509, and the average home equity was $91,000 in 2021, according to Hometap, citing data from Zillow and CoreLogic.
“Utah has seen a rapid acceleration in home values, but homeowners have been limited in how they can tap equity without taking on debt in a rising interest rate environment,” said Jeffrey Glass, CEO of Hometap. “As real estate values continue to soar, homeowners are looking for new ways to tap their home’s value without the added burden of a loan, both to address their immediate financial needs and meet their long-term financial goals. We are very excited about expanding our geographic footprint into Utah and helping more homeowners.”
Hometap offers debt-free cash in exchange for a share of the borrower’s home’s future value. Homeowners do not have to pay any monthly payments or interest over the life of the investment.
Read more: Loan alternative firm’s growth fueled by $60 million cash infusion
Including Utah, Hometap’s home equity products are currently available in 18 states: Arizona, California, Florida, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, South Carolina, Ohio, Oregon, Pennsylvania, Virginia, and Washington.