Figure Heloc Review 2022 – Top 10 HELOC services
As a property holder, you may have thought about tapping your home’s equity to pay for urgent exigencies through a home equity line of credit (HELOC). Because, above all, the value you’ve accrued in your asset might make up a decent-sized chunk of your net worth when you sell. Making use of it when things are tough is a good idea.
Applying for a HELOC might take a long time, but it is a great approach to get money for daily exigencies. On the other hand, one business is striving to simplify this laborious process. Figure is a new financial firm using cutting-edge technology to change the loan sector for the better.
This company may be the answer if you’ve been looking for a way to manage your mortgage more effectively.
Let’s take a deeper look at Figure Company’s features and capabilities.
Figure HELOC
Figure gives customers a new, more convenient option for a home equity line of credits and mortgage refinancing. There are many positive reviews for this spanking-new business. Figuring out what works best for you is made easier with Figure since it provides customers with extra fiscal possibilities.
However, Figure isn't suitable for anyone. But, finding a loan package that works for you is possible. Finally, it would help to decide what is suitable for your particular fiscal condition and needs.
- The usual HELOC and home equity creditors' schemes can't compete with the distinct benefits that Figure's Home Equity Line has to give.
- Fixed Interest Rate
- HELOCs, which operate like spinning lines of credit, generally have variable interest rates that go up and down in tandem with market rates. Figure is the first company to provide a HELOC with a fixed interest rate and a credit period of up to three decades. These fixed interest rates are also pretty economical, with APRs spanning from around 4% to almost 15%. Remember that the annual percentage rate considers the loan interest and closing costs.
- Transparent Fee Framework
- With a long established HELOC or mortgage, the creditor takes a lot of money in charges. However, when using Figure, you only have to pay a one-time origination charge. And that's when you're taking your first loan. There are no extra costs, including those for late payments. And if you pay off the loan before schedule, you won't be subjected to any prepayment pena
- However, Figure's software has its share of drawbacks, too. Consider these downsides before applying for their HELOC.
- Client Service Restrictions
- Automated systems are fantastic for getting things done quickly, but how do you get in touch with a natural person? HELOC lenders need multiple phone conversations, but Figure does not support that. A levy-free phone number and a web chat are available for a live client, along with an email address. Physical meet up with a lender are possible, but that's not the situation with Figure.
- Short Draw Phase
- The draw period of Figure's HELOC is two to five years long, depending on the credit period's length. On the other hand, many HELOC with a 30-year term provide borrowers with a 10-year draw period followed by a rollover to a 20-year payback stage. The brief draw period of Figure is preferable to having no suppleness at all; on the other hand, it can't compare to the suppleness offered by a genuine HELOC.
- Property Restrictions
- Even though Figure
About Company
Figure, a financial technology business headquartered in San Francisco, provides HELOCs in 41 states and mortgage refinancing options in 32 states.
Figure was established in 2018 by Mike Cagney, the former Chief Executive Officer and creator of the financial services firm SoFi. It provides an entirely digital approach that can send you money in less than a week using block chain technology and artificial intelligence. This is a severe reduction compared to the usual four to six weeks needed by most traditional creditors.
There are plans to introduce a personal loan choice to the company’s Home Equity Line, the business’s main product.
Services
Let us take an in-depth look at Figure’s capabilities, shall we?
- Trouble-free Application Process
The prominence of a fast and trouble-free credit application process can’t be downplayed. At the end of the day, you’re a person with many engagements. And no person has the time to rush to the bank multiple times to apply for a loan.
Because of the robust automation, Figure makes sharing your data with a creditor easy. The process is quite developed, keeping the stress linked to loan application at bay.
- Prices and Conditions that are Competitive
Figure’s rates are among the lowest in the industry. The prices are even more appealing if your credit score is great.
Borrowers may choose between 30-year and 15-year fixed terms when refinancing with Figure, which gives them suppler.
- Alternatives for Debtors with Poor Credit Score
Even if you can land a better rate with a more-than-perfect credit score, Figure gives alternatives to people with a poor credit score. As a matter of fact, if you’re applying for mortgage refinancing confirming loans, your credit score may not even need to be 620 to qualify for a HELOC.
If you have been looking for a HELOC, you already know how difficult it can be to get a cheap APR with a less-than-perfect credit score. Fortunately, Figure allows you to acquire the financing you require without paying an exorbitant cost.
- Jumbo Loan Refinancing
Figure provides two kinds of jumbo loan refinancing – cash-out jumbo and rate refinancing. Up to $2,000,000,000 in loans may be borrowed at a lower rate via rate refinancing.
And up to $1,000,000 is available for cash-out borrowing with a cash-out ceiling of $500,000.
To qualify for these borrowing options, your credit score must be no less than 700.
- The Figure Smartphone Application
Figure has an iOS smartphone application, which you can download. Although the smartphone application is to some degree basic, it includes the features that most borrowers demand.
You can apply for a HELOC completely via the smartphone application. And once you have concluded the application process, you can see your preferred loan amount, period, APR, and application progress on the dashboard.
In addition, you can register for the company’s student loan borrowing waiting list on the application. Still, you are not allowed to request either type of loan refinancing the company provides.
Apart from credit submissions, the iOS application makes a link available to the company’s blog, where you’re fed all the data about Figure and countless blog posts concerning home financing themes.
Finally, it’s also possible for users to share Figure with friends and colleagues by clicking on the social media icons found at the bottom part of the application.
- Blockchain Technology
As a result of deploying blockchain technology, the company’s transactions are safer, faster, and affordable. And that’s how they can get you funded and approved so quickly.
- Varying Annual Percentage Rates (APRs)
In Figure, the overall loan-to-value ratio, property location, and credit score affect the home equity line APRs. If you’d like a discount, you may sign up for automatic payments via Figure’s partner, Quorum Federal Credit Union, by clicking a box.
Plans and Pricing
In most cases, public sources provide the prior year’s mean and median credit rates and prices. Hence, allowing the masses to break down and liken interest rates and charges side by side.
Since Figure is a relatively new creditor, there is little public data available for this item at this task at the moment.
Figure’s focus on refinancing and home equity loans may distort the findings because interest rates differ depending on the kind of credit.
Please get in touch with the firm to learn more about what Figure can do for you.
- Prequalify without damaging your credit score
The great news is that you won’t have to wait long to find your rate and costs.
The company will carry out a “soft” credit assessment to provide you with an estimate. Furthermore, your credit score will be unaffected.
On the other hand, the enterprise will ask for a complete credit report if you choose to continue with a complete application. The same is true for every submission for a loan.
- Figure credit score requirements
To qualify for a Figure mortgage, you must have a credit score of at least 700.
– Conforming: Minimum 620
– Jumbo: Minimum 700
– HELOC: Minimum 620*
*A HELOC from Figure requires a credit score of 720 or above in Oklahoma.
To use Figure, you must have a loan-to-value ratio of less than 80 percent. Put another way; you may borrow up to 80% of the assessed price.
Loan-to-value ratios of 75 percent or less are necessary for Jumbo refinancing loans.
However, you should note that loan borrowing may only be done against your primary house; no second homes or investment properties are allowed to be deployed as security.
Figure closing costs
Notably, the creation of an escrow account and the reimbursement of a percentage of your annual investments, taxes, and indemnity payments, if relevant, are usually needed by this creditor.
On jumbo refinancing credits, escrow accounts are not obligatory.
Regarding HELOCs, Figure levies an origination cost that may rise as high as 4.99 percent.
Frequently Asked Questions
To what degree will Figure refinance existing mortgages with the following balance ranges?
Loans for refinancing mortgages can span between $100,000 and $1,500,000.
What’s the maximum number of years credit can be amortized over when getting a mortgage to refinance through Figure?
Refinancing for a longer or shorter period can affect your once-a-month payment costs. While extending your loan period will lower your once-a-month payments, the additional interest you part with will more than make up for the savings. If you are looking for 30-year mortgage refinancing loans, go no further than Figure.
When refinancing a mortgage with Figure, how long does the process take?
A refinancing transaction handled by Figure usually concludes in around four business days. It goes without saying that this is only a guess. The particular period will vary from lender to lender and market to market.
Does Figure impose a cost for the first processing of the mortgage?
Figure indeed charges a 2% credit origination charge.
Does Figure impose prepayment penalties?
There are no prepayment penalties in Figure. This means that if you pay off your mortgage early, there will be no extra charges.
Figure allows for what forms of property use?
In many cases, specific lenders limit borrowers’ use of a mortgaged property. However, Figure is unique and gives the go ahead for several asset usage forms.
Does Figure provide student loans or the option to refinance existing student debts?
Figure ceased giving student loans, and it stopped learners’ loan refinancing in 2020 due to the effects of the pandemic.
Are there any credit card recommendations or credit cards offered by Figure?
Credit cards and credit card proposals are not available on Figure’s website.
How can I get a Figure.com discount?
As far as we know, there aren’t any Figure coupons or deals available now.
How much time does it take to acquire endorsement for credit through Figure?
The larger chunk of candidates may finish the submission in less than five minutes and will obtain approval straight away. If you do not finish all of the phases within a fortnight, your submission will be considered incomplete, and you will need to begin again.
Exactly how do HELOCs and home equity loan rates differ?
Borrowing money against the worth of your house may be carried out through several diverse financial instruments, the most common of which are best home equity loan rates and HELOC. HELOCs operate a lot like credit cards, making it easier to draw just the necessary amount. This is in contrast to home equity loans that allow you to borrow a substantial amount simultaneously. The monthly payment for a home equity credit will be a set amount, while the monthly payment for a HELOC will vary depending on how much money you use on a monthly basis.
Which kinds of real estate are eligible for funding through the Figure program?
At this moment, the Figure Company’s financing is limited to transactions necessitating principal homes. The eligibility requirements do not apply to vacation houses or investment properties. Additionally, they will only evaluate applications from people or couples who want to borrow jointly. Unfortunately, at this time, proprietorship kinds, for example, as LLCs, Trusts, and others do not meet the requirements for Figure loans.
Is The Company Right For You?
BBB has given Figure an F rating. The BBB assigns a firm a grade based on how it responds to customer grievances, how truthful its advertisements are, and how transparent it is concerning its business processes. Nonetheless, it would help if you didn’t take the BBB’s grade with great regard since it was determined based on a handful of customers’ grievances that were not satisfactorily handled.
Bear in mind that the ratings provided by the BBB are just meant to function as a reference and are not always indicative of how your experience will be working with a particular firm. Because Figure has not been engaged in any recent scandals, you will need to compute the company’s impeccable track record against its unsatisfactory rating with the Better Business Bureau before establishing whether or not to borrow money from the lender.
