{"id":181811,"date":"2025-03-27T07:22:01","date_gmt":"2025-03-27T13:22:01","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=181811"},"modified":"2025-03-27T07:22:34","modified_gmt":"2025-03-27T13:22:34","slug":"a-smarter-way-to-unlock-your-goals-with-a-heloc","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/a-smarter-way-to-unlock-your-goals-with-a-heloc","title":{"rendered":"Unlock Your Home Equity: A Smarter Way to Finance Your Goals"},"content":{"rendered":"\n<p><span data-preserver-spaces=\"true\">For homeowners and real estate investors, accessing home equity has traditionally been a long and tedious process\u2014until now. With new digital lending solutions, tapping into home equity is faster and more accessible than ever.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Whether you want to renovate your home, consolidate debt, or expand your real estate portfolio, more streamlined options are now available to help you unlock your equity efficiently. Figure, the No. 1 nonbank HELOC lender in the U.S., is here to help you <\/span><span data-preserver-spaces=\"true\">along the way<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Benefits of a HELOC Over a Cash-Out Refinance<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">A <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/what-is-a-heloc\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">HELOC<\/span><\/a><span data-preserver-spaces=\"true\"> (home equity line of credit) and a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/cash-out-refinance-vs-heloc\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">cash-out refinance<\/span><\/a> <span data-preserver-spaces=\"true\">both<\/span><span data-preserver-spaces=\"true\"> allow homeowners to access their home equity, but they have different purposes and distinct advantages. Here\u2019s how a HELOC compares to a cash-out refinance.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Keep your existing mortgage <\/span><span data-preserver-spaces=\"true\">rate<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">A HELOC is a separate line of credit from your mortgage, allowing you to keep your current low-interest mortgage rate if you\u2019ve locked in a favorable one.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">A cash-out refinance, on the other hand, replaces your existing mortgage with a new loan at today\u2019s rates, which may be higher than what you\u2019re currently paying.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Flexible access to funds<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">A HELOC works like a credit card, letting you borrow and repay as needed during the draw period, only paying interest on the amount you use.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">A cash-out refinance gives you a lump sum upfront, meaning you\u2019ll start paying interest on the full amount immediately, even if you don\u2019t need all the cash at once.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Lower upfront costs<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">HELOCs often have lower closing costs than a full cash-out refinance, making them a more cost-effective option for borrowers who don\u2019t want to pay for a full mortgage reset.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Cash-out refinances often <\/span><span data-preserver-spaces=\"true\">come with<\/span><span data-preserver-spaces=\"true\"> higher fees, appraisal costs, and other closing expenses.<\/span><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Faster approval &amp; funding<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Many HELOC providers, like Figure, offer digital applications with funding in as little as five days,* making it an excellent option for those needing quick cash access.<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">A cash-out refinance typically takes several weeks due to the underwriting, appraisal, and closing procedures.<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">When a Cash-Out Refinance Might Be Better<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">If you want to secure a lower mortgage rate than your current loan<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">If you need a large lump sum upfront for a significant purchase<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">If you prefer a fixed loan structure instead of a revolving credit line<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Why Consider a HELOC With Figure?<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Fast and <\/span><span data-preserver-spaces=\"true\">simple<\/span><span data-preserver-spaces=\"true\"> digital process<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Unlike traditional lenders, Figure now offers a fully online HELOC application and funding process. Homeowners can apply in minutes, receive funding in as little as five days,* and avoid the cumbersome paperwork often required by banks.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Competitive fixed rates<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">HELOCs are typically known for variable rates that fluctuate over time, but some providers, like Figure, offer competitive fixed rates* to provide stability and predictable payments. <\/span><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> allows borrowers to plan long-term without worrying about sudden interest rate hikes.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">3. High borrowing limits<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">Borrowing limits up to $400,000* give homeowners and investors the <\/span><span data-preserver-spaces=\"true\">financial<\/span><span data-preserver-spaces=\"true\"> flexibility to take on major renovations, real estate investments, and high-interest debt consolidation.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">4. Ideal for real estate investors<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">For those looking to scale their investment portfolio, HELOCs offer quick access to capital without selling assets or dealing with traditional financing hurdles. Investors can find lending solutions that allow them to leverage their home equity to purchase additional properties, fund rehab projects, or make strategic improvements to increase rental income.<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">5. Transparent terms and no hidden fees<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">A good HELOC provider ensures a transparent, fair, and upfront process. There should be no hidden fees, prepayment penalties, or surprises\u2014just a straightforward way to access your home\u2019s equity on your terms.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Who Can Benefit From a HELOC?<\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Homeowners looking to finance home renovations or significant expenses<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Real estate investors needing capital for new acquisitions or property improvements<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Debt-conscious borrowers consolidating high-interest credit card debt into lower, fixed payments<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Entrepreneurs tapping into equity to fund business growth<\/span><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Exploring Your Options<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Tapping into your home equity has never been easier. With a fully digital application process, competitive rates, and fast funding, securing financing on your schedule is more convenient than ever. <\/span><span data-preserver-spaces=\"true\">Figure<\/span><span data-preserver-spaces=\"true\"> is one of the leading nonbank HELOC providers offering innovative solutions to help homeowners and investors make the most of their equity.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Interested in learning more? Visit <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.figure.com\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Figure.com<\/span><\/a><span data-preserver-spaces=\"true\"> to explore your options.<\/span><\/p>\n\n\n\n<p><em><span data-preserver-spaces=\"true\">Figure Lending LLC dba Figure. NMLS 1717824. *Terms apply. Visit Figure.com for more information. Equal Housing Opportunity<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>For homeowners and real estate investors, accessing home equity has traditionally been a long and tedious process\u2014until now. With new digital lending solutions, tapping into home equity is faster and [&hellip;]<\/p>\n","protected":false},"author":613755,"featured_media":179359,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5530],"tags":[],"class_list":["post-181811","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-financing"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/181811","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613755"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=181811"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/181811\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/179359"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=181811"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=181811"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=181811"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}