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Why a home equity line of credit is better than a personal loan

You have options when it comes to financing your next big purchase or project. Why settle for a personal loan when you may be able to use your home to secure a home equity line of credit (HELOC) at a lower rate?4navigates to numbered disclaimer With Figure, you could access up to $400k5navigates to numbered disclaimer by tapping your home equity in as little as 5 minutes with a 100% online application and funding in as few as 5 days.2navigates to numbered disclaimer

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Learn why Figure's HELOC could be the better choice:

  • Faster and easier

    With Figure, you could get approved in as little as 5 minutes with funding in as few as 5 days,2navigates to numbered disclaimer all with a 100% online application. Personal loans often require more documentation and can take longer to process.4navigates to numbered disclaimer No need to jump through hoops or waste time with lengthy in-person appointments.

  • Borrow more for less

    HELOCs typically offer lower interest rates than personal loans, which could help you save money over time. Plus, with Figure, you could borrow up to $400k4navigates to numbered disclaimer and enjoy longer loan terms up to 30 years. And with the ability to redraw funds as needed, you have the flexibility to manage unexpected expenses or ongoing needs.

  • Trusted with billions

    At Figure, we've helped thousands of people achieve their financial goals through our innovative and convenient lending solutions. Figure has funded over $9 billion in HELOCs, making us a trusted and experienced lender in the industry. Our innovative technology and customer-centric approach make us the best choice for your financing needs.

  • Interest rates

    A Figure HELOC typically has lower interest rates than personal loans.4navigates to numbered disclaimer While traditional HELOCs usually have variable interest rates that can change over time, our HELOC provides fixed rates1navigates to numbered disclaimer for added stability and predictability in your payments.

  • Potential tax breaks

    Depending on how you us the loan, interest payments may be tax deductible which isn't the case for a personal loan. Be sure to consult a tax advisor.

Figure's HELOC offers greater borrowing flexibility compared to personal loans4navigates to numbered disclaimer

A HELOC is faster and has easier approvals, better terms, and lower rates. If you're a homeowner with equity in your home, a HELOC from Figure may be the perfect solution for your financing needs.

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Figure's HELOC vs. Personal Loan4navigates to numbered disclaimer

Compare HELOCs and the average Personal Loan side-by-side to help you make an informed decision about tapping into your home's equity.

Figure HELOC

Average Personal Loan*navigates to table disclaimer

Application100% online, see your rate instantlyVaries by lender
Fixed rate1navigates to numbered disclaimerYesYes
Average APRLowerHigher
AmountUp to $400k5navigates to numbered disclaimerUp to $100k
Prepayment penaltyNonePossible
Tax deductibleFor home improvement
(be sure to consult a tax professional)
Not tax deductible
Overall costLowerHigher

Have more questions?

Let's dive into the two options so you can make an informed decision.

As a homeowner, you may have considered a personal loan to borrow money. However, have you thought about a Home Equity Line of Credit (HELOC)? A Figure HELOC offers several advantages over a personal loan, including:

  • Flexibility

    With a Figure HELOC, you can take additional draws after the initial disbursement making it ideal for ongoing expenses or accessing equity over a longer period of time. Personal loans provide a lump sum, with no option to redraw which is better suited for one-time expenses with a fixed cost.

  • Online Support

    Online video notary sessions are available in some locations. Call us at 888-819-6388 Monday through Saturday, 6am – 5pm PT.

  • Fees and closing costs

    Both personal loans and HELOCs may come with fees and closing costs, so it's important to compare them carefully. At Figure, we don't charge application or annual fees, and we cover most closing costs.6navigates to numbered disclaimer

With Figure, you can access your home equity with a line of credit

Complete an application in as little as 5 minutes with a 100% online application, and you could have funding initiated in as few as 5 days.2navigates to numbered disclaimer

Apply now

What can I use a home equity line of credit for?

A HELOC can be used for many different purposes such as:

Home improvement

Finance your next project.

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