Last updated Mar. 15, 2023 by Charles Zemub
This review of Figure Loan compares the finest mortgage lenders, giving you the knowledge you need to make an educated selection regardless of where you are in the search process: whether you are just starting out or trying to narrow your options.
The figure is a new lender that provides customers with different options for borrowing money, whether it’s for the purpose of paying off debt or consolidating debts they already have.
Personal loans from Figure are tailored to customers who have established credit histories (a FICO score of 690 or better). The organization is proud to provide a shortened application procedure and financing in a few business days.
Figure loans, in contrast to those offered by other online lenders, do not have adaptable features such as the choice of payback date, the ability to add a co-signer or collateral, and so on.
The Basics Of Figure Home Figure Technologies Inc, founded by SoFi co-founder Mike Cagney and his wife June Ou, is a financial firm that effectively offers a range of home loan options to consumers using blockchain technology and AI.
Figure leverages blockchain technology to eliminate the middleman (financial institutions) and increase the effectiveness, security, and affordability of mortgage financing. The figure mainly provides mortgage refinancing loans and home equity lines of credit, heavily emphasizing the former.
For flexible access to cash, people may utilize a home equity line of credit to borrow against the value of their property, which they “own” in full. Figure once offered student loan funding, but the 2020 COVID-19 epidemic forced them to halt that provision permanently.
The Numbers App
For the iPhone, Figure has a mobile app that can be downloaded. Even though the app is somewhat basic, most borrowers will find what they need. You may complete your home equity line of a credit application on the app. When you apply, you may check the progress of your application and see the desired loan amount, length, APR, and dashboard information. On the app, you may also join the waiting list for Figure’s student loan refinancing program, but you cannot apply for either company’s two types of mortgage refinancing.
Along with links to loan applications, the Figure app has a blog where you can read general blog pieces on home finance and news about Figure. To share Figure with others, Figure includes connections to Facebook, Twitter, and Instagram at the bottom of the app.
Types of Loan
The primary product of the Figure is a home equity line of credit. This, sometimes known as a HELOC, enables you to borrow money whenever needed. In addition, the Figure provides cash-out refinancing and mortgage refinancing. A decent credit score is required for all of Figure’s goods. Low credit score borrowers could find it difficult to get credit via Figure.
HELOCs, as previously noted, allow you to borrow money whenever you need it using your equity as security. If you satisfy the conditions, Figure’s HELOCs feature among the lowest interest rates available.
People often use HELOCs to quickly pay for major costs (like a home renovation) or to combine numerous lesser loans. Figure promotes them as personal loan options due to these factors. In addition, Figure HELOCs are well known for having outstanding interest rates and quick financing. You may submit an application in five minutes, and you’ll have funding within five days. The majority of other lenders have a 45-day maximum.
Insurance is one item to bear in mind. Figure mandates homeowner’s insurance on all HELOC borrowers. You must also carry flood insurance if your house is in a flood plain and provide evidence while applying.
When you refinance your mortgage, you take out a new mortgage with new conditions to pay off your previous one. People often do this to get higher interest rates and fewer monthly payments. This is why conventional mortgage refinancing is sometimes called “rate-and-term” refinancing. Once again, the quickness of the loan closure is Figure’s main asset.
The figure can get you a refinancing loan in weeks instead of the normal 30-45 days in the market. The figure can be the best option if you want to benefit from the low-interest rate situation. Unfortunately, Figure does not permit refinancing vacation houses or investment properties.
When you take out a home equity loan and use your property as collateral for the loan, you can borrow money at a fixed interest rate that is far lower than practically any other form of loan. The funds are made accessible as a single lump amount, and the payback period may be anything from one to thirty years. Additionally, the interest that you pay might possibly be tax deductible.
Both a home equity loan and a home equity line of credit, often known as a HELOC, are comparable since they both utilize your property as collateral and provide reasonable interest rates. The most important distinction is that a home equity loan will provide you with a predetermined quantity of money at a set interest rate.
In contrast, a home equity line of credit will provide you with a line of credit at a variable interest rate, from which you may then withdraw.
To get started, visit a website offering prequalification and find an anticipated rate using a “soft pull” that will not hurt your credit score. Before determining an interest rate for the loan, the Figure will inquire about fundamental particulars such as the borrower’s income. If you choose to proceed with your application, the firm will do a hard credit draw, which might harm your credit score.
The cash from your HELOC may come as quickly as five days after the closing documents have been signed, but the process might take longer if you reside in an area that requires an in-person closing rather than an online one.
Reverse mortgages are not the only option available to older citizens, and Figure has just created Figure Home Advantage to meet this need. Additionally, the organization is now developing and implementing a wealth management program.
However, at the moment, Figure is most well-known for the product known as the Figure Home Equity Line. This kind of loan gives you access to the equity in your house, which may then be used for various purposes, including large purchases and the consolidation of existing debts.
With a home equity line of credit, you can borrow money against the value of your house as long as the amount you owe on your existing mortgage is less than the amount the property is now worth.
Because your home secures the loan, its interest rate is often lower than the interest rate on many other forms of consumer debt, but this does put your home at risk if you cannot repay the loan.
Before granting you approval for a home equity line of credit or loan, most lenders will demand an appraisal. The results of this assessment will validate your home’s current worth. After all, to determine how much money you can borrow, a lender must know how much your home is now worth.
In contrast to the assessment necessary for a fresh new mortgage, an appraisal for a HELOC or home equity loan can often be conducted in just a few seconds using a computer and does not involve a visit to the appraised property.
Frequently Asked Questions
The figure works well for internet loans, debt consolidation, and home improvements. The best for borrowers with fair credit, best for home improvements, best for debt consolidation, best online lender, and most innovative home equity product were all given to Figure in the 2022 Bankrate Awards.
If the institution you apply to admits you, it will analyze your FAFSA data and assemble a financial assistance package. This will go through the financial help you may get, including loans, grants, scholarships, work-study money, and more.
Depending on the credit scoring methodology, there are several ranges. Still, generally speaking, credit scores between 580 and 669 are regarded as fair, 670 and 739 as good, 740 and 799 as very good, and 800 and above as exceptional.
4. What is a simple formula for finding equity in your home?
Subtract the balance of any debts secured by your property from its assessed value to determine how much equity you have.
5. How does figure pay work?
You may be accepted for less than the amount you were approved for, even if the loan is only financed at the moment of sale and for the transaction amount.
6. Is HELOC a second mortgage?
Both a home equity loan and a home equity line of credit (HELOC) are examples of second mortgages. However, a HELOC is not a one-time payment.
7. What is the figure on my credit report?
A client’s creditworthiness is shown by their credit score, which ranges from 300 to 850. The better a borrower seems to prospective lenders, the higher their score.
8. Who owns Figure lending?
Mike Cagney is the creator and former CEO of the online personal loan marketplace SoFi. To take advantage of the blockchain’s influence on the payments sector, he founded Figure Technologies. Over the course of 10 fundraising rounds, Figure Technologies has received $1.6 billion in total.
Consumers have a new, more simplified option for HELOCs and mortgage refinancing thanks to Figure, and the company is set to provide other products in the near future. Despite the fact that it has only been around for a short while, the firm has received a lot of positive feedback.
In the end, Figure provides customers with more financial alternatives, and when you have more options, you have a higher chance of finding a solution that is tailor-made to your specific needs.
Despite everything, Figure may not be the right choice for everyone. In this scenario, you can still access various loan options that suit your needs. Ultimately, it is up to you to decide what course of action will be most beneficial to you and your current state of personal finances.