I don't like it for a few reasons:
1. Point benefits from home appreciation so why in the world would you remodel? It's effectively a 20% penalty for remodeling vs a mortgage.
2. You can already get a 2nd mortgage at a low fixed rate to unlock equity. Point still does underwriting.
3. The Point APR is about double the rate of inflation compounded annually plus fees. Fixed mortgages aren't compounded annually because the interest is being paid. Not that it matters too much right now but the compounding effect in high inflation would be pretty bad.
4. Determining whether or not to use Point is difficult. We don't know exactly what home prices will be in the future. Just a 0.5% difference in home appreciation can make a huge difference. It makes financial planning a little more difficult.
I think using Point would be best in areas where the land value is low compared to the house. Buildings never grow in value as much as lots do since buildings get run down and outdated over time. Since lot values are high in Orange County I probably wouldn't use Point here. I wouldn't consider using point unless it was for paying off high interest debt.
