Figure launches first-of-its-kind calculator to help homeowners save money by comparing HELOC to cash-out refinance
SAN FRANCISCO, May 25, 2022 /PRNewswire/ — Figure Technologies Inc., the nation’s largest and most forward-thinking non-bank lender of home equity financing, saw record demand for home equity lines of credit through April , exceeding $200 million in volume over the month. April was its sixth consecutive record month for HELOCs, with May already outpacing April volume.
Rising property values across the country have led homeowners to continue to tap into their equity to make home improvements, consolidate debt, pay for school or make a major purchase. A home equity loan allows homeowners to access their equity without refinancing their mortgage. Given the recent upward trend in first mortgage interest rates, Figure’s home equity loan, when added to a first mortgage, can maximize the amount a customer can borrow while maintaining the total interest payments at a low level.
To help consumers understand the benefits of a HELOC over a cash-out refinance, Figure has launched a one-of-a-kind calculator on its website allowing a customer to enter information including the principal balance and interest rate of their mortgage, the current value of their home, and the amount of additional loan they want. Consumers can then select HELOC terms and immediately compare their estimated savings and interest rate against a cash refinance and apply online, where they can be approved in minutes and funded in as little as five days. Unlike a traditional home equity loan, which can take months to fund, Figure’s automated process allows homeowners to quickly access the equity in their home with less hassle than a mortgage or equity loan. traditional home.
“In today’s higher interest rate environment, a HELOC offers customers an affordable way to borrow money, and for people with equity in their home, it can be a much cheaper option compared to a personal loan, credit card or private student loan,” said Daniel Wallace, managing director of Figure’s lending business. “Whether consumers are looking to remodel their home or send their child to college, Figure is ready to provide consumers with an affordable option that best suits their financial needs.”
In April, Figure customers said they used their HELOC loans for home improvement (42.8%), debt consolidation (36.6%) or to make a major purchase (8%). This closely tracks how consumers used their HELOC in Q1 2022: home improvement (44.4%), debt consolidation (33.2%) or major purchase (9.1%). In the months leading up to Covid (January-March 2020), consumers reported using their HELOC for debt consolidation (54.2%), home improvement (29.7%) or a major purchase (5%).
Figure is a leader in transforming financial services through the power of blockchain. Consumers can get their HELOC application approved in five minutes and receive funds in as little as five days. For more information, please visit https://www.figure.com/home-equity-line/.
About the figure
Figure is transforming financial services through blockchain, bringing speed, efficiency and savings to consumers and institutions. Figure continues to unveil a series of fintech firsts in the capital markets, investment management, banking and payments sectors. Figure relies on Provenance Blockchain for lending, servicing, funding and now private fund services. The company was founded in 2018 by a serial tech entrepreneur Mike Cagney, who also founded SoFi and grew the company into a multi-billion dollar enterprise under his leadership as CEO. Learn more at https://www.figure.com/.
VP of Communications