Figure Review for Fixed-Rate Home Equity Loans

The research in brief

Figure is a mixed fit for a Fixed-rate lump sum second mortgage. Two of the seven platforms in this study named Figure during the ranking stage, and the seven fit evaluations split sharply: one rated it a strong fit, two rated it good, two mixed, one weak, and one could not verify the product at all. The strongest reason to consider Figure is speed and structure: it advertises funding in as few as five days and requires a full initial draw at origination, which mimics a lump sum ^[15]. The main limitation is that Figure's product is documented as an open-end home equity line with redraw capability, not a true closed-end second mortgage ^[13].

Research Snapshot

Why Figure Qualified for This Study

Questions explored

• Why did Figure qualify for a fixed-rate lump sum second mortgage study if only two platforms named it?
• Is Figure a legitimate contender for a fixed-rate lump sum second mortgage, or just a HELOC?

Figure qualified because it cleared the study's minimum-mention threshold and because its advertised product structure superficially matches the use case. Two of the seven platforms — DeepSeek and Kimi — named Figure during ranking discovery, meeting the two-mention minimum. Deepseek ranked it first; Kimi ranked it seventh ^[19].

The qualification is not a quality signal. Figure's own site describes a fixed-rate, lump-sum second-lien home equity loan with terms commonly cited in the 5–30 year range ^[19]. That description is what put Figure in front of the ranking platforms. But the same product is described elsewhere as a home equity line of credit, and Figure's marketing prominently features its HELOC rather than a standalone closed-end loan ^[19].

This is the central tension of the review: Figure qualified because a fixed-rate lump-sum second mortgage appears to exist in its product set, but the platforms could not agree on whether that product is a closed-end loan or an open-end line. That disagreement is documented in the sections below rather than resolved.

The mortgage offering in focus

Questions explored

• Which Figure product should a buyer apply for if they want a fixed-rate lump sum second mortgage?
• Is Figure's fixed-rate lump sum product a closed-end loan or a HELOC?

The relevant Figure product is inconsistently named across platforms, and buyers should treat that as a warning sign rather than a detail. Deepseek, Grok, and Kimi describe a "Figure Home Equity Loan" marketed as a fixed-rate, lump-sum second lien ^[19]. OpenAI and Gemini describe a "Figure Fixed Rate Home Equity Line" ^[13]. Anthropic describes a "Figure Home Equity Line of Credit (HELOC) with fixed-rate option" ^[30]. Perplexity describes a product that is a "Figure Home Equity Loan / Figure HELOC-style home equity product" ^[12].

The structural question matters more than the name. Figure's own FAQ states that the initial approved amount, less the origination fee, is drawn at origination, but the borrower may make additional draws during the draw period ^[13]. Independent reviews agree: Figure requires a full draw at closing, and borrowers can redraw up to the original amount during a 2–5 year draw period as principal is repaid ^[36]. Google's evaluation states the same: a mandatory 100% draw at closing with a fixed rate and fully amortized payments, plus a 2–5 year redraw window ^[15].

For a buyer who wants one fixed principal balance and no future-draw feature, that redraw capability is a structural mismatch, not a cosmetic one. Figure's own materials do not clearly verify a current 5-to-30-year closed-end home-equity-loan term menu ^[13].

What the AI Platforms Agreed About

Questions explored

• What do AI platforms agree on about Figure's fixed-rate lump sum second mortgage?
• Does Figure really fund a fixed-rate lump sum in about five days?

Four points drew broad agreement across the seven platform evaluations.

First, the initial draw is funded as a lump sum at origination. OpenAI, Claude, Gemini, Grok, and Perplexity all describe a mandatory full draw at closing, less the origination fee ^[13]. This is the feature that makes Figure resemble a lump-sum loan at the moment of funding.

Second, the initial rate is fixed. Anthropic cites independent reviews stating the rate is locked at the time of the initial draw ^[28]. Google describes a fixed rate locked at origination with fully amortizing payments ^[15]. Grok reports initial fixed APRs from roughly 6.95% to 14.40% ^[20].

Third, funding speed is advertised as approximately five business days. Figure states funding in as few as five days for eligible loans of $400,000 or less using remote online notarization ^[13]. Independent reviews repeat the five-business-day figure ^[28]. Perplexity notes the speed claim is conditional on eNotary availability and no appraisal requirement ^[12].

Fourth, there are no prepayment penalties, annual fees, or maintenance fees in the reviewed materials. Figure states it does not charge inactivity, annual, or early-closure fees for its HELOC ^[7]. Independent reviews repeat the no-prepayment-penalty claim ^[45].

Agreement on these four points does not establish product quality. It establishes that the platforms read the same company disclosures and largely repeated them.

Where the AI Platforms Disagreed or Were Uncertain

Questions explored

• Why do AI platforms disagree about whether Figure offers a true closed-end second mortgage?
• Is Figure's advertised rate range reliable for a fixed-rate lump sum second mortgage?

The platforms disagreed on fit rating, product classification, pricing, and term options.

Fit ratings split seven ways. Google rated Figure a strong fit, calling it "top-tier" if speed and convenience are prioritized ^[15]. Deepseek and Grok rated it good ^[19]. OpenAI and Perplexity rated it mixed ^[13]. Anthropic rated it weak, calling the product a "fundamental product mismatch" for a closed-end buyer ^[30]. Kimi rated it uncertain, reporting that its search returned zero direct information about Figure's fixed-rate second mortgage terms, rates, or fees ^[6].

Product classification is the deepest conflict. OpenAI states plainly that the ranking description refers to a fixed-rate lump-sum second mortgage, but Figure's current public materials describe a Fixed Rate Home Equity Line, which is open-end ^[13]. Anthropic states Figure offers HELOCs exclusively, not closed-end home equity loans ^[30]. Deepseek, by contrast, states Figure's own site describes a fixed-rate, lump-sum second-lien loan distinct from its HELOC ^[19]. Both readings trace to Figure-owned pages, which is why the conflict cannot be resolved from the supplied evidence.

Pricing ranges conflict across sources. OpenAI reports initial APRs from 7.25% to 14.70% ^[13]. Grok reports 6.95% to 14.40% ^[20]. Perplexity reports 6.50% to 15.10% ^[12]. Anthropic reports 5.14% to 13.00%, with rates starting around 6.55% for well-qualified borrowers including a 0.25% autopay discount ^[33]. These are not reconcilable from the supplied evidence; they likely reflect different dates, states, and fee selections.

Maximum loan amount also conflicts. U.S. News and Money report up to $750,000 ^[30]. Grok reports $15,000 to $400,000 typical, up to $750,000 in some cases ^[25]. Clear Value Lending reports $15,000 to $400,000 ^[25]. Anthropic notes some sources cite $400,000 as the maximum ^[45].

Term options are only partially verified. Anthropic cites Figure's own guide for 10, 15, 20, and 30-year terms, with 5-year options available per other sources ^[14]. Google cites 5, 10, 15, and 30-year terms ^[37]. OpenAI states the reviewed sources do not clearly verify a complete current menu of fixed repayment terms ^[13].

Credit score minimums conflict. Anthropic cites a 600 minimum in most states and 720 in Oklahoma ^[31]. The same platform elsewhere cites 640 as the recommended score for competitive rates ^[31].

Mortgage features for this borrowing need

Questions explored

• How fast can Figure fund a fixed-rate lump sum second mortgage, and what loan amounts are available?
• Does Figure require an appraisal for a fixed-rate lump sum second mortgage?

Funding speed is Figure's clearest advantage for this use case. Figure advertises funding in as few as five days for eligible loans of $400,000 or less using remote online notarization ^[13]. Independent reviews repeat the five-business-day figure ^[28]. LendingTree lists Figure among the fastest HELOC closers at five days, often with no appraisal ^[38]. The claim is conditional: funding may take longer when an in-person closing, waiting period, appraisal, or additional property verification is required ^[13].

Loan amounts range from $15,000 to $750,000 in most platform reports, subject to underwriting and property-specific limits ^[13]. Grok reports $15,000 to $400,000 typical with up to $750,000 in some cases ^[25]. Amounts above $400,000 are subject to appraisal ^[13].

Valuation is largely automated. Figure states no in-person appraisal is generally required for loans under $400,000, though it may use automated valuation models, property-condition reports, or a desktop appraisal when needed ^[13]. Independent reviews confirm AVM usage ^[28].

Combined loan-to-value limits vary by source. Anthropic cites up to 85% CLTV for most borrowers, with one source indicating 95% available for highly qualified applicants ^[41]. Google cites a maximum CLTV of up to 85% ^[29]. Grok cites up to 85% CLTV ^[25].

Geographic availability is broad but not universal. Figure operates in 46 states plus Washington, D.C., according to NMLS data cited by The Mortgage Reports ^[31]. Figure's own contact page states New York mortgage applications or products are not facilitated through the site ^[11].

Property type restrictions are significant. Figure excludes co-ops, commercially zoned real estate, multifamily, manufactured housing, earth or dome homes, timeshares, log homes, houseboats, mixed-use properties, and properties purchased in the last 90 days ^[30].

Rates, fees, and ongoing costs

Questions explored

• How much does Figure charge in origination fees on a fixed-rate lump sum second mortgage?
• What closing costs should a buyer expect beyond Figure's origination fee?

Figure's origination fee is the most consistently reported cost and the largest single limitation. Figure states the origination fee can be up to 4.99% of the initial draw, depending on state and credit profile ^[13]. Independent reviews repeat the 0–4.99% range and note it is amortized into the payment schedule rather than due at closing ^[36]. A Reddit discussion cited by Gemini describes the 4.99% fee applied to a $300,000 loan ^[44]. Google's evaluation notes that on a $100,000 loan, a 4.99% fee would net roughly $95,010 in cash ^[35].

Additional possible charges are itemized in Figure's disclosures. These include a $180 valuation charge where an automated valuation model is unavailable, a $500–$2,000 appraisal charge for certain loans above $400,000, a $350 manual notarization fee where eNotary is unavailable, recording fees of $0–$315, and state or county recording taxes ^[13]. Grok reports recording fees and taxes varying by state and county ^[20].

Ongoing fees are limited. Figure states it does not charge inactivity, annual, or early-closure fees for its HELOC ^[7]. Independent reviews confirm no prepayment penalties, account maintenance fees, or application fees ^[45]. One source cited by Claude states a prepayment fee may apply on some products, creating uncertainty on specific product terms ^[45].

Contract structure is where the fixed-rate lump sum use case breaks down. The product is open-end and may permit additional draws during the draw period ^[13]. Additional draws may carry a different rate based on the applicable Prime Rate plus a fixed margin ^[13]. The reviewed sources do not establish the complete current draw-period and repayment-period schedule ^[13]. Anthropic reports draw periods of 2–5 years depending on loan term, with full principal and interest repaid over the selected term ^[41].

Pricing confidence is moderate at best. OpenAI rates its pricing confidence moderate ^[13]; DeepSeek rates its confidence low because Figure does not publish a full fixed-rate home equity loan rate table ^[19]; Kimi could not verify any pricing at all ^[6].

Best Suited For

Questions explored

• Who is Figure actually a good fit for in the fixed-rate lump sum second mortgage market?
• Is Figure worth it for a homeowner who values speed over the lowest possible rate?

Figure is best suited for borrowers who prioritize speed and a digital process over the lowest possible all-in cost. Google's evaluation states Figure is a strong fit for homeowners needing rapid funding without a lengthy bank approval process, a fully digital experience without an in-person appraisal, and a fixed-rate lump sum with a fallback redraw option ^[15]. Grok's evaluation reaches a similar conclusion: Figure is a good fit when speed outweighs minimizing upfront fees ^[20].

The specific buyer profile that fits best has four traits. They want a single known expense funded quickly. They can tolerate an origination fee up to 4.99%. They either do not mind or actively value the ability to redraw repaid principal during the draw period. And they qualify at the upper end of Figure's credit and equity requirements, which unlocks better pricing ^[31].

Deepseek frames the same buyer differently: a homeowner with a single large known expense who wants a predictable fixed monthly payment rather than a variable revolving balance, and who values a stated fast funding timeline and an online application process ^[19].

Probably Not Best Suited For

Questions explored

• Who should not choose Figure for a fixed-rate lump sum second mortgage?
• Is Figure a bad choice for a buyer who needs a true closed-end second mortgage?

Figure is probably not the right choice for a buyer who needs a true closed-end second mortgage with no redraw feature. Anthropic states this directly: a buyer requiring a true one-time loan with no redraw option will find Figure a fundamental mismatch ^[30]. OpenAI reaches the same conclusion from a different angle, noting the open-end structure, redraw feature, and potentially different future-draw rates make Figure less aligned than a true closed-end fixed-rate home equity loan ^[13].

Three other buyer profiles are poor fits. Borrowers seeking the lowest total origination cost should look elsewhere, because Figure's origination fee can reach 4.99% while industry norms are typically 1–3% ^[13]. Borrowers with credit scores below 600 in most states, or below 720 in Oklahoma, will not qualify ^[31]. Borrowers in New York cannot use Figure at all ^[11].

Property type is a fourth disqualifier. Co-ops, commercial property, multifamily, manufactured housing, and homes purchased within the last 90 days are excluded ^[30].

When Another Option May Be Better

Questions explored

• What is a better alternative to Figure for a buyer who needs a true closed-end fixed-rate second mortgage?
• When should a buyer choose a bank or credit union over Figure for a fixed-rate lump sum second mortgage?

A true closed-end second mortgage from another lender is likely better when the buyer's defining requirement is a one-time disbursement with no revolving feature. Anthropic names U.S. Bank, PNC, and TD Bank as traditional banks offering true closed-end home equity loans with transparent pricing and lower origination fees of 1–3% ^[30].

Kimi's evaluation names several lenders with published closed-end second mortgage terms: Newrez offers fixed-rate seconds up to $500,000 with a 660 minimum credit score and a no-cost soft credit pull ^[24]; Movement Mortgage offers fixed-rate second liens up to $350,000 with a 640 minimum FICO ^[3]; Foundation Mortgage offers fixed-rate seconds up to $1 million with 10/15/20/30-year terms ^[1]; Newfi Olympic Seconds offers $75,000–$750,000 with 10/15/20/30-year fixed terms ^[4]; and Mbanc offers closed-end seconds up to $500,000 with a 15-day close ^[2].

A local bank or credit union may be better when the borrower wants a materially lower origination cost or a better fixed-rate term, or wants to compare lenders using total APR and all-in closing costs rather than speed alone ^[13]. A traditional lender may also be better when the buyer wants published fixed rates and transparent pricing before applying ^[19].

For broader context on how Figure compares across the category, see the home equity loan and heloc lenders directory.

Questions to ask before choosing a lender

Questions explored

• What should a buyer confirm with Figure before signing a fixed-rate lump sum second mortgage contract?
• How can a buyer confirm whether Figure is offering a HELOC or a closed-end loan?

The single most important question is whether the closing documents classify the product as a HELOC/open-end line or as a closed-end home equity loan ^[13]. Buyers should also confirm the exact fixed APR, note rate, term, monthly payment, and total finance charge for the initial draw ^[13].

On cost, buyers should ask for the exact origination fee in dollars, whether it is deducted from proceeds or added to the balance, and whether any state-specific early-payoff, lien-release, annual, servicing, or document fees apply ^[13]. They should also confirm whether an appraisal, desktop appraisal, property-condition report, manual notarization, recording fee, or recording tax will be required ^[13].

On structure, buyers should ask whether future draws are optional, how long the draw period is, and what exact index, margin, floor, cap, and payment rules apply to those draws ^[13]. They should confirm the maximum combined loan-to-value and minimum credit, income, and debt-to-income requirements ^[13].

On timing, buyers should ask for the earliest realistic funding date for their property, county, loan amount, and occupancy status ^[13]. They should also confirm state availability, property type eligibility, lien position, and intended use ^[11].

The consensus assessment

Figure is a mixed fit for a fixed-rate lump sum second mortgage, and the split is structural rather than cosmetic. The platforms agreed that Figure funds a full initial draw at a fixed rate, advertises five-day funding, and charges no prepayment or maintenance fees. They disagreed on whether that product is a closed-end loan or an open-end line, and that disagreement traces to Figure's own materials.

For a buyer whose defining requirement is a single fixed principal balance with no redraw feature, the evidence points away from Figure. For a buyer who wants speed, a digital process, and a fixed rate on the initial draw, and who does not object to the redraw feature, Figure is a reasonable candidate that should be compared against published closed-end alternatives on total APR and all-in closing costs.

The consensus index for this category is the Fixed-rate lump sum second mortgage report.

How This Review Was Produced

This review was produced from seven platform fit evaluations collected on 2026-09-29. Each platform was asked which providers it would recommend for a homeowner who needs a specific, known amount of money for a one-time expense and wants the certainty of a fixed interest rate and a fixed monthly payment over a set term. Figure was named during ranking discovery by two of the seven platforms and was evaluated for fit by all seven.

Platform fit ratings were: Gemini strong; DeepSeek and Grok good; ChatGPT and Perplexity mixed; Claude weak; Kimi uncertain. No platform conducted independent verification of Figure's claims. All pricing, term, and fee figures are platform-reported or company-reported and were not independently validated at the writer stage.

Research limitations

Several limitations apply to this review.

Company-owned citations materially outnumber independent citations in the supplied evidence. Figure's own pages account for a large share of the pricing, term, and fee claims. Company claims are not independently verified.

Platform-reported research dates differ from the authoritative run date. Deepseek's evaluation is dated 2026-06-01; all other platforms are dated 2026-09-29. The study date is 2026-09-29. Platform-reported dates are provenance metadata and do not independently prove freshness.

The supplied URLs were collected from platform responses and were not independently validated by the writer stage. Citations are platform-reported evidence, not independently verified facts.

Kimi's evaluation reported no search results containing direct information about Figure's fixed-rate second mortgage product terms, rates, fees, or features. That absence is reported as uncertainty, not as evidence that the product does not exist.

Pricing, maximum loan amounts, term options, credit score minimums, and CLTV limits conflict across platforms and sources. These conflicts are described rather than resolved. Buyers should obtain a personalized quote and a Loan Estimate before choosing Figure over a competing lender.

Sources

Company-Owned Sources

1. Closed-End Second Mortgages | Fixed-Rate Home Equity Loans: https://foundationmortgage.com/closed-end-second-mortgages/
2. Closed-End Second Mortgage: https://mbanc.com/mortgage-solutions/closed-end-second-mortgage/
3. Fixed Rate Second Lien: https://movement.com/loans/fixed-rate-second-lien
4. Second Mortgage Loans Up to $750K with 90% LTV: https://newfi.com/second-mortgage/
5. Second Mortgage: https://www.additionfi.com/personal/mortgages-group/tap-into-home-equity/second-mortgage
6. Figure Official Website - General Information: https://www.figure.com/
7. Understanding HELOC Closing Costs: What Fees to Budget For: https://www.figure.com/blog/are-there-closing-costs-on-a-heloc/
8. HELOC vs Home Equity Loan: Which Is Better For You? - Figure: https://www.figure.com/blog/home-equity-loan-vs-home-equity-line-of-credit/
9. How a Figure home equity line works: https://www.figure.com/blog/how-a-figure-home-equity-line-works/
10. The HELOC Experience Has Been Forever Changed by Figure: https://www.figure.com/blog/the-heloc-experience-has-been-forever-changed-by-figure/
11. Contact Us | Figure: https://www.figure.com/contact/
12. Disclosures - Figure Lending: https://www.figure.com/disclosures/
13. Frequently Asked Questions | Figure: https://www.figure.com/faqs/
14. Figure Home Equity Line of Credit Guide: https://www.figure.com/home-equity-line-of-credit-guide/
15. Home Equity Line of Credit (HELOC) - Apply Online in Minutes - Figure: https://www.figure.com/home-equity-line-of-credit/
16. See today's HELOC rates - Figure: https://www.figure.com/home-equity-line-of-credit/rates/
17. Home Equity Line of Credit - Apply Online in Minutes | Figure: https://www.figure.com/home-equity-line/
18. Home Equity Line of Credit (HELOC) Payment Calculator: https://www.figure.com/home-equity-line/heloc-calculator/
19. Figure Home Equity Loan: https://www.figure.com/home-equity-loan/
20. Private labelled HELOC Lending Partnerships: https://www.figure.com/partner-heloc/
21. Get Cash 6x Faster with a Figure HELOC vs. Traditional Refi: https://www.figure.com/search/heloc-vs-cash-out-refi/
22. Apply for your Home Equity Line of Credit Fast - Figure: https://www.figure.com/social/why-heloc/
23. HomeSafe Second: Second Mortgage and HELOC Alternative: https://www.financeofamerica.com/solutions/homesafe-second/
24. Newrez Closed-End Second Mortgage | Express CES: https://www.newrezwholesale.com/loan-products/closed-end-seconds/

Independent Sources

25. Figure Home Equity Loan Review 2026: 5-Day: https://clearvaluelending.com/reviews/figure-homeequity
26. Figure Technology Solutions: https://en.wikipedia.org/wiki/Figure_Technology_Solutions
27. HELOC and home equity loan rates today Wednesday, March 18, 2026: https://finance.yahoo.com/personal-finance/mortgages/article/heloc-home-equity-loan-interest-rates-today-wednesday-march-18-2025-100000875.html
28. Figure HELOC Review 2026: Rates, Terms, Requirements, and How It Works: https://lendedu.com/blog/figure-home-equity-loan-review/
29. 10 Best Home Equity Loans of September 2026 | Money: https://money.com/best-home-equity-loans/
30. Figure Home Equity Loan Review 2026 | U.S. News: https://money.usnews.com/loans/mortgages/reviews/figure-mortgage
31. Figure Review for 2026 | The Mortgage Reports: https://themortgagereports.com/67526/figure-mortgage-review-rates-loan-products-credit-score
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34. Best HELOC Rates of September 2026 - Credible: https://www.credible.com/blog/home-equity/best-heloc-rates/
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37. Homebridge Standalone HELOC: https://www.homebridge.com/wp-content/uploads/2022/08/Standalone-HELOC-Guidelines.pdf
38. Fastest HELOC Closing in 2026: 5 Days To Close | LendingTree: https://www.lendingtree.com/home-equity/fastest-heloc-closing/
39. What Is a Second Mortgage? Rates, Uses and More: https://www.lendingtree.com/home/home-equity/second-mortgage/
40. Figure HELOC Review: https://www.marketwatch.com/guides/home-equity/figure-lending-heloc/
41. Your Home Equity Line of Credit Guide | Figure: https://www.moneycrashers.com/figure-home-equity-line-review/
42. Figure Home Equity Loan Review: https://www.nerdwallet.com/reviews/loans/home-equity/figure
43. Figure HELOC - what is the rate like for subsequent draws?: https://www.reddit.com/r/Mortgages/comments/164uovk/figure_heloc_what_is_the_rate_like_for_subsequent/
44. HELOC - Figure.com $300k; 4.99% fee; 7.1% APR : r/Mortgages: https://www.reddit.com/r/Mortgages/comments/16rdb3l/heloc_figurecom_300kb_499_fee_71_apr/
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