The little-known alternative to home equity loans that more homeowners are discovering

For a long time, homeowners looking to turn their home equity into cash typically had two choices: a home equity loan or a home equity line of credit, also known as a HELOC. Both usually require monthly payments tied to the amount borrowed. A newer option, called a home equity investment, or sometimes a home equity agreement or home equity sharing, works differently. Instead of taking on monthly payments, the homeowner gets a lump sum from the provider and later agrees to share a portion of the home's future value.