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Figure Mortgage Review
If you’re looking for a new mortgage loan, Figure Mortgage is one of the lenders that is available to you. Figure Mortgage first opened its doors in 2018, but by 2020, the lender had already reached over $1 Billion in loan originations. Using a combination of blockchain technology and artificial intelligence, applicants who work with Figure Mortgage can expect speed and accuracy throughout the entire process.
But while this fintech company can offer you certain types of mortgages, it doesn’t offer traditional mortgage loans. Figure Mortgage currently only offers mortgage refinance and home equity line of credit (HELOC) loans to borrowers. It does not offer conventional loans to buy homes, nor does it offer any government-backed purchase offers either.
Still, there are plenty of reasons you may want to work with this lender. You can get a decision in as little as five minutes, and home equity lines of credits can be funded within 5 days of approval. That gives you quick access to the money you’ve built in your home when you need it most.
We use our proprietary SimpleScore methodology to rate all major lenders, based on a combination of customer satisfaction, fees, interest rates, loan terms, and customer support, to determine which are the best, so you can make an informed decision when choosing a mortgage lender.
Figure Mortgage at a glance
|Mortgage refinance and HELOC||Get up to $250,000 for a line of credit or $500,000 to refinance your residence. Choose from a 5-, 10-, 15- or 30-year term on home equity lines of credit or a 30-year fixed refinance loan.|
|Certain credit union members qualify for an APR discount||Be an active member or join Quorum Federal Credit Union, Valley Strong Credit Union or Teachers Federal Credit Union and receive a 0.50% APR discount|
|Autopay discount||0.25% if enrolled in Autopay|
What we like about Figure Mortgage
Fast, all-digital process
Figure Mortgage offers an entirely digital experience that can be completed in record time. Most potential borrowers can complete the initial application in about five minutes and get a near-instant decision on their loans. All that’s required to initially apply is the property information and a few personal details (including the name, date of birth, phone number and income).
If approved, additional information must be provided, like proof of home insurance and verification of income. All required documents can be uploaded to the online account, keeping the entire process digital.
When it comes to funding for home equity line of credit loans (HELOCs), Figure Mortgage advertises funding within five days of applying in states. This also allows the use of e-notary and e-signing to help expedite the process.
The application requires your name, date of birth, employment detail, and property information. Once approved, you can sign and have your documents notarized online, making the entire process quick and easy. In many cases, it takes less than a week from application to funding.
Prequalify without affecting your credit score
To prequalify and get access to rates, Figure Mortgage does a soft credit check and provides a rate based on the information you entered on the application. A soft credit inquiry won’t affect your credit score and you can use this rate to compare the Figure offer to other lenders. If you want to move forward with the line of credit or refinance with Figure, a hard credit check will occur, which may alter your rate.
Things to consider
Not available in all states
Figure Mortgage is working to expand to all 50 states, but are limited to certain states for now.
Figure Home Equity Line is licensed in:
- Washington, DC
- North Carolina
- New Hampshire
- New Jersey
- New Mexico
- Rhode Island
- South Dakota
Figure Mortgage Refinance is licensed in:
- North Carolina
- North Dakota
- New Hampshire
- New Jersey
- New Mexico
- South Dakota
- West Virginia
Loans limited to refinances and lines of credit (HELOC)
If you’re on the market for a home purchase, you won’t be able to get a mortgage through Figure. Right now, this lender only offers refinance loans and HELOCs. The home equity lines of credit loans are offered on primary and secondary homes. Refinances are available on the primary residence only.
Figure Mortgage vs. the competition
Third Federal Savings & Loan Mortgage
New American Funding Mortgage
How much will a Figure mortgage cost?
The cost for a refinance or line of credit with Figure Mortgage varies by credit score, interest rate and the fees allowed in your state. Expect to pay between 3% and 6% of the principal of the loan amount for the fees.
With Figure, the origination fee is between 0% and 4.99% of the mortgage principal, which can be significant depending on the size of the loan. This doesn’t include appraisal, credit report and recording fees, which vary by state.
Figure offers two discounts, which can save you up to 0.75% on your interest rate. Members of certain credit unions can save 0.50% and those who choose autopay can save an additional 0.25%.
[ Read: How to Calculate Your Mortgage ]
Cheaper alternatives to Figure Mortgage
Though Figure Mortgage offers competitive rates on its refinances and lines of credits, there could be cheaper alternatives. Alliant Credit Union offers both loan types with a fixed origination fee of $1,795. With Figure’s origination fee of up to 4.99%, Alliant may be a cheaper alternative to Figure.
For veterans looking to refinance their homes, USAA’s mortgage loans could help to save more when compared to Figure. Its VA Interest Rate Reduction Refinance Loan (IRRRL) doesn’t have an origination fee, and USAA will pay a portion of the closing costs. That saves applicants an average of $2,842.
Figure Mortgage in the news
- In March 2020, Figure Mortgage was announced the winner of HousingWire’s 2020 HW Tech100 Mortgage award. “In just two years, Figure has become the fourth largest HELOC originator in the United States and homeowners can now borrow up to $150,000 with a fixed rate.”
- According to a March 2020 Business Wire article, Figure Mortgage was able to secure over $1 Billion in loans in just 16 months, making it the first fintech company to do so.
- The Charlotte Business Journal announced in July 2020 that Figure would head to the East Coast, opening up operations in Charlotte, North Carolina. The expansion is being spearheaded by longtime mortgage expert C.D. Davies, previously of Wachovia, CitiGroup, Capital One and Lending Tree.
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