Home Equity Line of Credit (HELOC)

It depends on your APR and term — there is no one-size-fits-all payment. A $100,000 HELOC will usually have a higher monthly payment than a $50,000 HELOC, but your APR and repayment term can make a big difference. Check your rate to see how much you could borrow.

Your monthly HELOC payment depends on your loan amount, interest rate, and other factors. Use our HELOC calculator to estimate your monthly cost and see how different amounts or terms could affect your payment.

There are lenders that offer both variable rate and fixed interest rate home equity lines of credit. Figure offers both fixed^{1: Navigates to numbered disclaimer} and variable^{8: Navigates to numbered disclaimer} options so you can choose the option that works best for you. A fixed-interest rate HELOC can provide payment predictability and peace of mind for borrowers. A variable-interest rate can change over time and follows the market. Some months your payment could be higher, and some months it could be lower.

To qualify for a HELOC, you must have sufficient equity in your home, meaning the amount you owe must be less than the home's current value. Lenders typically allow borrowing up to 90% of the home's value minus what you owe. Besides equity, lenders consider factors like credit score, credit history, employment, income, debt payments, and debt-to-income ratio to determine approval, credit line amount, and interest rate. The qualification process is similar to applying for a mortgage, so it's important to research and ensure you meet specific lender requirements before applying.

You may be able to deduct interest paid on a home equity product if the loan is used for home improvement. You should consult a tax advisor regarding the deductibility of interest and charges.

Most applicants can complete the application in 5 minutes and you'll receive the results of your prequalification request immediately. However, final approval is subject to verification of income and employment, as well as the condition of the property.

A home equity loan provides a lump sum with fixed payments and interest, usually over 5 to 20 years, and is often used for major home repairs or debt consolidation. In contrast, a traditional HELOC offers a flexible credit line for ongoing expenses, allowing you to borrow as needed over a set period. Figure's HELOC gives you the full amount upfront with fixed^{1: Navigates to numbered disclaimer} or variable^{8: Navigates to numbered disclaimer} interest rate options, but like a traditional HELOC, you can borrow again once part of the principal is repaid.

Yes. Figure accepts properties held in LLCs as eligible collateral, as long as all standard underwriting requirements are met.

A HELOC may offer a lower rate than a personal loan because it is secured by your home. A personal loan usually has a faster, simpler structure without putting your home on the line, though rates can be higher. Compare the monthly payment, total cost, and risk — not just the headline rate.^{9: Navigates to numbered disclaimer}