How much does a Home Equity
Agreement Cost?
We believe in transparent pricing with no surprises. Here's a breakdown of the costs associated with your HEA:
1. Origination Fee
Nada charges a 4.99% origination fee, which is deducted from the investment proceeds at the time of funding. This ensures you can access your home's equity upfront, without worrying about monthly payments or ongoing fees.
2. Underwriting & Processing Fees
In addition to the origination fee, there are underwriting and processing fees that total around $1,000 on average. These fees are deducted from the investment proceeds and cover the cost of underwriting your property and processing your application.
3. Equity Share on Home Value
Nada takes a percentage of your home's value at the time of origination. The cost to buy back your equity on a HEA is determined by the lower of two methods: (1) Nada's equity share, which is a percentage of your home's value recalculated at payoff when you sell, refinance, or buy back your equity; or (2) an annualized cost limit, capped at 19.99% per year to ensure your total repayment never exceeds this limit, providing peace of mind and financial protection.
Find Out How Much Cash You Qualify For
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Now, let's see how much it will cost
Your initial estimated home value from above: $500,000
ⓘ
ⓘ Nada' share cannot exceed a maximum return of 19.99% (annualized, compounding daily).
¹ Includes original amount accessed
When you enter into a Home Equity Agreement with Nada, the value of Nada's gain or loss is tied to the change in your home's value from the starting appraised value at the time of the agreement. Nada receives a percentage share of your home's future value, based on the amount of equity you access upfront. To determine that share, Nada multiplies your initial cash amount by an equity multiple of 1.85. For example, if you access 10% of your home's value as cash, Nada's share would be 18.5% (10% x 1.85). At the end of the agreement, Nada calculates the settlement amount by applying its share percentage to your home's updated appraised value. To protect homeowners, Nada caps the annualized return at no more than 19.99% per year, ensuring predictable and fair repayment terms.
Nada Home Equity Agreement Example
10-year example investment & repurchasing scenario
This example scenario is one of many based on the estimated home value at repurchase.
Based on third-party valuations
10% of Initial Home Value less origination fees and costs
10% X 1.85 Equity Multiple
based on a 4% appreciation rate
Nada receives 18.50% of the new home value, equating to a 10.60% annualized cost over 10 years
Your home appreciated by $480,000,
and Nada's share increased accordingly.
If the value stayed the same or declined, Nada would share the risk with you.
Get My Cash EstimateHow Nada Stands Out
Why Choose Nada
Simple & Transparent Costs
Nada charges a one-time fee with no interest or monthly payments. The equity share is calculated at the time of settlement, ensuring clarity and simplicity in repayment terms.
Lower Costs Than Traditional Options
Unlike HELOCs or refinancing, there are no ongoing payments or high interest rates.
Capped Repayment for Predictability
Your total repayment is capped at 19.99% annually, providing financial protection and peace of mind. This ensures fair and predictable terms, regardless of how long the agreement lasts.
Access to Discounted Mortgage Services
As a licensed mortgage office, Nada offers discounted refinancing services to help you buy back your equity. We also monitor interest rates to ensure you get the best deal when refinancing.
Access to Discounted Realtor Services
Many of our licensed realtors or partners can list your home at a discounted rate, saving you money if you decide to sell your property.
No Monthly Payments or Interest Charges
Nada's Home Equity Agreements allow you to access funds without monthly payments or accruing interest, freeing up your cash flow for other priorities like savings, living expenses, or investments.
Flexible Use of Funds
The funds from a Home Equity Agreement can be used for any purpose, such as home improvements, debt consolidation, medical expenses, or other large purchases. There are no restrictions on how you choose to use the money.
Easier Qualification Requirements
Unlike traditional loans, Home Equity Agreements have more lenient credit score requirements, making it easier for homeowners with lower credit scores to access their home equity.
Common Questions
What is the annualized cost limit (ACL)?
Nada’s Home Equity Agreement includes an ACL that limits your maximum cost to 19.99% per year. This means even if your home’s value rises sharply, you’ll never owe more than the ACL, giving you predictable protection
What is an exchange rate?
The exchange rate determines how much of your home’s future value is exchanged for the cash you receive today. Nada’s standard exchange rate starts at 1.85. For example, if you access 10% of your home’s value, the 1.85 exchange rate means Nada would be entitled to 18.50% of your home’s future value when the agreement ends — or 19.99% if the ACL applies, whichever is less.
Are there any prepayment penalties?
No, Nada’s Home Equity Agreements have no prepayment penalties. You can sell your home or buy out the agreement at any time without extra fees
