HELOC payment question
Hey BP,
I am planning to apply HELOC (HELOAN?)with Figure to use for down payment on investment property. Figure shows me it will be fixed rate for 10,15, 30 years whatever timeframe I want. My question is if they approve my application and fund the whole amount and while I am still looking for property, do I have to make any payment to Figure like principal/interest? OR only make payment when I start using the fund?
Their agent told me for example if they fund $100k to my checking account while I am still searching for property, then every month I just need to make full payment amount of $100k, by that way I dont have to pay any interest (is it correct?) and I only pay interest on the amount IF I use. On their website it states "HELOC" on application but this sounds like HELOAN to me.
So hows the payment structure gonna be for my case if I get $100k in my checking account now?
They quoted me fixed rate 7.35% APR 30 years.
thank you