Heloc (how to make payment?)

[An Nguyen]

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

[Bryan Maddex]

This is not very correct. If you payoff the heloc 7 days after it closes, you will pay 7 days of interest on the heloc.  Figure can be a great and very fast option, but they generally are not the best rates. 7.x% on a figure heloc sounds very low for their typical options unless this is low loan to value on a primary home?

If on your primary home, you are better off going to a local bank or credit union. I have never done a fixed rate option with Figure but I do not use them very often for my clients and they have been working on new programs/products.