If you’re a homeowner, then you’ve likely thought about the possibility of using your home’s equity to fund pressing expenses through a home equity line of credit. After all, the equity you’ve built in your home may represent a large chunk of change. Why shouldn’t you take advantage of that resource when things get tight?
Although a HELOC can be a great way to fund life’s expenses, obtaining the line of credit can be a time-consuming process. But there is one company that is working to streamline the often arduous process. Figure is a relatively new financial company that is using technology to revolutionize the lending process.
The company could be the streamlined loan solution that you have been looking for to efficiently manage your mortgage.
Let’s take a closer look at what Figure has to offer.
What is Figure?
Figure is a lending company that currently offers two different products. You can obtain:
- Mortgage refinancing.
- Home equity lines of credit.
Of course, many lenders provide these types of loans. So the question of the hour: what makes Figure special?
For one, Figure offers a 100% online-only application experience– that allows you to finalize your entire application from the comfort of your home.
Another major benefit of working with Figure: the speed at which they process their loans.
With the power of technology behind their online application process, they are able to significantly decrease the amount of time it takes to process and fund a loan.
According to their site, you can:
- Close on your mortgage refinance in just weeks, not months. Figure notes that quick closing is dependent upon timely completion of the application process and timely scheduling and completion of the appraisal and closing. Funding will occur three business days after your recession period ends.
- Receive the funding of your home equity line of credit in just five days. Figure also notes that closing in five days is dependent upon timely completion of the application process and closing with the remote online notary, which is not available in all locations.
Instead of waiting days or weeks for loan approval, Figure aims to make a decision within minutes for their HELOC product. With other lenders, you might be waiting for weeks to finalize the loan process and receive your funds.
How does Figure work?
Figure has a very simple online application process that essentially eliminates the painstaking process of tracking down all of your paperwork to scan or fax to the lender.
If you’ve ever gone through a loan process, then you understand how frustrating it can be to track down all of the paperwork that a mortgage lender typically requests. It can take many unrelenting hassle-filled days of working with a traditional lender to work through the lending process.
Fortunately, Figure takes the frustrations out of their lending process. Instead, you can walk through the online application in minutes and receive your approval after a few more minutes for HELOC. On average, it takes about 20 days before you receive a decision for Mortgage Refinance upon completing your application.
In order to get started with Figure, you click on the “Find My Rate” button in the top right corner.
That will take you to the first part of the process to determine what your rates would be.
You’ll be asked to provide some basic information. It would help to have the following information on hand:
- Your legal name.
- Date of birth.
- Citizenship status.
- An estimate of your annual income.
- Your primary address.
- Your email.
With this information, Figure will run a soft credit check. You’ll have access to your initial loan offers within minutes.
It is important to note that you will need to apply for each lending product separately. For example, if you wanted to work with Figure for your mortgage refinance and a home equity line of credit, then you will need to fill out two separate applications.
But rest assured – the application process is so fast, it won’t take up too much of your time to do this.
Once you receive your loan offers, you’ll be able to select which offer works best for you. If you decide that you want to move forward with your loan offer, then you can finish the official application. At this point, you will be required to provide additional information.
You will be asked to:
- Agree to a hard credit check.
- Connect at least one checking account for income verification.
- Prove your identity with a government-issued ID.
It can help to have this information handy to speed up your application.
With the information you provide in your HELOC application, Figure will use automation to evaluate your financial habits. When you are approved for the loan, you will need to work with a remote notary to sign the documents and finalize your loan. Note that remote notaries are not available nor accepted in all states and counties. Specifically though, if the borrower’s location does not allow Figure to use remote notarization, they send a mobile notary to your location who notarizes in person.
If you have any questions throughout the loan application process, then you should contact Figure directly. The company can offer assistance via email at firstname.lastname@example.org or live chat on their website.
Plus, they have customer service members available if you prefer that route.
How much does Figure cost?
The hassle-free style of Figure makes it an enticing lender to work with. Luckily, the rates that Figure offers are also very attractive!
Let’s take a closer look at the costs of using Figure as a loan provider.
As with all mortgage refinancing processes, there are some fees to be aware of. Unfortunately, you’ll be faced with these types of fees regardless of the mortgage lender you choose to work with.
Fees that apply include appraisal, settlement, title and recording fees. There may be several more that will depend on your unique situation.
Home equity line of credit
You can also land low APR rates on your home equity line of credit through Figure.
In order to open your home equity line of credit, you will need to pay a one time origination fee equaling a percentage of the initial draw amount and you may also be required to pay recording fees charged by the county where your property is located. However, you will not be subject to any maintenance fees that other lenders usually require.
There are ways to reduce your HELOC’s costs. Figure offers discounts on your APR¹ if you choose to sign up for autopay or opt into a credit union membership.
Features of Figure
Let’s take a closer look at the features that Figure has to offer.
Painless application process
The importance of a quick and painless loan application process cannot be understated. After all, you are a busy person with things to do. No one has time to run back and forth to the bank several times just to finalize your loan.
With the power of automation, Figure takes the hassle out of sharing your information with your lender. It is a truly expedited process that can remove a lot of the stress traditionally associated with applying for a new loan.
Competitive rates and terms
The rates that Figure offers are highly competitive across the board. The rates are especially attractive if you have a good or excellent credit score.
Figure also offers both 30-year and 15-year fixed terms for their refinances, giving borrowers options when it comes to their refinance schedule.
Options for borrowers with low credit scores
Although you can land a better rate with a higher credit score, Figure offers options for those with less than perfect credit. In fact, you might be able to secure a HELOC with a credit score as low as 620 (720 in Oklahoma) or 620 for mortgage refinance confirming loans (minimum 660 for jumbo loans).
If you’ve been seeking out a HELOC or mortgage refinance, then you’ll know that finding a competitive APR with a mediocre credit score is a challenge. Figure offers the option for securing the funding you need without a sky-high rate.
Jumbo loan refinancing
Figure offers two types of jumbo loan refinancing – rate refinancing and cash-out jumbo refinancing. With rate refinancing, you can refinance up to $2,000,000 and get better terms on your loan.
With cash-out jumbo loan refinancing, you can refinance up to $1,000,000, with a cash-out max of $500,000.
Note that, to apply for these types of refinancing with Figure, you will need to have a credit score of at least 700.
My experience researching Figure
While researching Figure, I created an account to understand the features of the company better. Overall, the website was incredibly easy to use. Figure led me through the application process, which was quick and simple – a welcome change to other lenders that have lengthy, often frustrating applications.
Not only was Figure easy to use, but Figure also explained their terms in a useful way. Throughout the process, I felt that the company explained what was happening. I liked that because sometimes applying for a loan can feel like an overwhelming process.
Instead of drowning in a sea of jargon, Figure was very clear about the terms of their loans. I was comfortable that I knew what I was getting myself into when I signed on the dotted line. Not only was the website straightforward, but it allowed for a quick application process to finalize these financial moves.
The rates offered by Figure are definitely competitive compared to the overall market. A good rate is one of the most important things in my book at the end of the day.
Although I did not move forward with refinancing my mortgage with Figure, it was a smooth learning process. If I was in need of mortgage refinancing and Figure was able to offer the best loan terms, I am fairly certain I would move forward with this company.
Who should use Figure?
Those looking to refinance their mortgage
If you are looking to refinance your mortgage, then you should consider Figure because the application process is a breeze. Other lenders could monopolize your life for the next week, but Figure will only take up minutes of your time to apply.
Those looking for a home equity line of credit
Finally, if you want to obtain a home equity line of credit, Figure is an amazing option because you will have access to the money you need sooner. In fact, you could receive funding in as few as five days².
Who shouldn’t use Figure?
It’s not a good idea for everyone to work with this company. If you have a credit score below 620 (720 for Oklahoma), then you will not be able to secure a HELOC (or 620 for mortgage refinance conforming loans; 660 for jumbo).
Also, consider why you are taking the equity out of your home. Unless it can be used to solve a pressing financial issue, the funds might be better off left in your home’s equity.
Pros & cons
- Simple application process — The technology behind Figure eliminates the time-consuming paperwork of a traditional loan application.
- Quick funding — You’ll receive your funds very quickly after the loan is approved (for a HELOC)
- Top-notch customer service — You can contact their team at any time to help you through the process.
- Competitive rates — The interest rate on your loan will affect your budget for years. With that, it is important to take advantage of a solid interest rate. Plus Figure has mortgage points, also known as discount points, which are fees paid directly to the lender in exchange for a reduced interest rate.
- Loan fees — There is an origination fee with a HELOC. Fees are never fun, however, this is fairly standard for the mortgage industry.
- Not available everywhere — Each of these products is available in most states, but not all states. It could be a problem if you live in an area that Figure doesn’t cover
- Funding cap — Figure has a loan cap of up to $400,000 for its HELOC product which could be a limitation depending on why you need the funds
|Loan options||Mortgage refinancing
Home equity lines of credit
Mortgages (and refinances)
|They don’t offer loans; they’ll invest in your property instead|
|How long will it take to get my funding?||As soon as 5 days for HELOC; and weeks, instead of months, for mortgage refinancing||Varies based on the lender you choose||Up to a few weeks|
|Application process||Varies based on the lender you choose||Quick, one-page application on lender site||Quick, 10 minute application|
In only three minutes, you can prequalify for a mortgage refinance with Credible. During that process, Credible delivers quotes from multiple lenders without affecting your credit score. If you see a rate you like, you can do everything online, including uploading documents through the website and monitoring the progress of your application.
- Cash-out refinancing
- Personal information is not shared
- Free to use
- Limited lending opportunities
- Lender fees may apply
Credible is a loan marketplace that can help you refinance your mortgage. Since the marketplace works with a variety of lenders, it can connect you to the most competitive prequalified rates on the market based on your personal information.
The application process is also online through the selected lender’s website. With Credible, you can make sure that you are receiving the best prequalified offer from a selection of lenders.
If you’re looking to access your home equity without taking on more debt, equity sharing through Hometap could be an option.
The company gives you cash in exchange for a stake in your home’s value — essentially becoming a co-investor in your property. You then have 10 years to either buy out Hometap or sell your home and share in the profits.
It’s important to note that Hometap is not a lender and does not offer loans. Instead, they invest in properties they know will gain value over time. For this reason, the amount of cash you’re eligible for will depend not only on how much equity you have, but also on Hometap’s estimated value of the property. According to the company, homeowners can access up to 15% of their home’s current value.
If you are seeking out a way to refinance your mortgage, or obtain a home equity line of credit, Figure is a company that is going to open up your options and make your life a heck of a lot easier.
My advice – do yourself a favor and avoid the tedious paperwork process for traditional banks. Instead, take a few minutes to fill out an application with Figure and cross this off your to-do list in just a few minutes.
¹ For Figure Home Equity Line, APRs can be as low as 4.49% for the most qualified applicants and will be higher for other applicants, depending on credit profile and the state where the property is located. For example, for a borrower with a CLTV of 45% and a credit score of 800 who is eligible for and chooses to pay a 4.99% origination fee in exchange for a reduced APR, a five-year Figure Home Equity Line with an initial draw amount of $50,000 would have a fixed annual percentage rate (APR) of 3.00%. The total loan amount would be $52,495. Alternatively, a borrower with the same credit profile who pays a 3% origination fee would have an APR of 4.00% and a total loan amount of $51,500. Your actual rate will depend on many factors such as your credit, combined loan to value ratio, loan term, occupancy status, and whether you are eligible for and choose to pay an origination fee in exchange for a lower rate. Payment of origination fees in exchange for a reduced APR is not available in all states. In addition to paying the origination fee in exchange for a reduced rate, the advertised rates include a combined discount of 0.50% for opting into a credit union membership (0.25%) and enrolling in autopay (0.25%). APRs for home equity lines of credit do not include costs other than interest. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone.
Figure Lending LLC dba Figure. 15720 Brixham Hill Avenue, Suite 300, Charlotte, NC 28277. (888) 819-6388. NMLS ID 1717824. For licensing information go to www.nmlsconsumeraccess.org. Equal Housing Opportunity. Licensed in Alabama 22533, Alaska AK1717824, Arizona 0948458, Arkansas 114692, California: Loans are made and arranged pursuant to a Finance Lenders Law License, Licensed by the California Department of Financial Protection and Innovation under the California Finance Lenders Law (License 60DBO81967), Delaware 026994, Florida MLD1636, Georgia Residential Mortgage Licensee 61229, Idaho MBL-9625, Indiana 39933, Iowa 88893478 and 2018-0048, Kansas MC.0025537 and SL.0026703, Louisiana 1717824, Massachusetts Mortgage Lender License ML1717824, Michigan FL0021494, Mississippi 1717824, Missouri 19-2421, Montana 1717824, Nebraska 1717824, Nevada 4823, New Hampshire 22423-MB, Licensed by the N.J. Department of Banking and Insurance, New Mexico 1717824, North Carolina L-180811, North Dakota MB103310, Ohio RM.804317.000, Oklahoma ML011894, Pennsylvania 66882, South Dakota ML.05202, Tennessee 151185, Washington CL-1717824, West Virginia ML-36248, Wisconsin 1717824BA