The Home Equity Line of Credit (HELOC) has seen a revival in 2022 for a few reasons. Many homeowners have probably noticed their home appreciated in value coming out of the pandemic. Today, these same homeowners are witnessing mortgage rates are also on the rise and therefore moving or refinancing may no longer be an option.
The HELOC provides homeowners access to cash, which presents options to move closer to their economic goals. If your customers need access to funds and they own a home with equity in it, you can now also provide them with HELOC opportunities through the Engine by MoneyLion marketplace.
As its name suggests, HELOCs are a revolving line of credit borrowed against the equity in a home. While technically, it is a loan (because the borrower will repay the money drawn), it's not a typical loan because as the outstanding balance is repaid during the draw period, the line is replenished - like a credit card. Therefore, your customers can borrow from the line as needed during the draw period (usually 10 years) and within the approved credit limit. After this period, the HELOC enters a repayment-only mode which typically lasts 10-20 years.
Why Offer HELOCs as Products?
The short answer is that your home owning customers may benefit from a HELOC, but they may not understand how it can be used as a financial tool. The HELOC allows property owners access to their equity which may open up other financial resources. The capacity to extract equity from one's home while still living in it can be a tremendous advantage when there are other financial demands at play.
1. Home Improvement: Many HELOC borrowers use the funds for home improvement projects. Upgrading household resources, such as adding new square footage or installing new fixtures in kitchens and bathrooms, usually also increases the overall value of the home. Using a HELOC for this purpose may improve the value of the home.
2. Debt Consolidation: They can pay off high interest credit card debt. In most cases, interest rates on HELOCs are lower than on credit cards. HELOC borrowers can reduce the interest they pay each month for credit card usage when they pay off that debt using a HELOC.
3. Financial Growth: They can make real estate investments that may provide additional sources of revenue or simply buy a second home. For example, many people contemplate investing in real estate as a rental unit or a vacation property. They can start a business: Like launching an investment property project, opening a business requires upfront capital to build out a company.
4. A Safety Net: Not least significant, HELOC funds can also be used to cover emergency costs. Obviously, emergencies can arise at any time and in any situation. If the emergency fund is low, a HELOC can be a safety net as an alternative to personal savings or retirement assets. With a HELOC your customers only pay back what is withdrawn from the line.
Every home owning customer is a potential HELOC borrower. You can enhance your organization's relationship with its home owning customer base by helping them understand the value of the HELOC, and then providing it to them with the same level of integrity and quality they receive from you otherwise. Engine by MoneyLion gives your organization the power to offer HELOCs to all your homeowning customers.
Interested in adding HELOCs to your business, or learning more about HELOC products in general? Reach out to us today.
Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Engine by MoneyLion product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Engine by MoneyLion through hyperlinks, from third-party websites, are provided for informational purposes only. While Engine by MoneyLion finds these sources to be accurate, it does not endorse or guarantee any third-party content.
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MoneyLion’s consumer and enterprise businesses were recognized as winners of Benzinga’s 2022 Global Fintech Awards at this year’s Fintech Deal Day
New York, December 14, 2022-- MoneyLion Inc. (“MoneyLion”) (NYSE: ML), the go-to destination for personalized financial content, products and advice, is proud to announce that it has been named “Best Financial Literacy Tool” at Benzinga’s 2022 Global Fintech Awards. MoneyLion’s enterprise business, Even Financial, was also named as the winner for “Best API.”
MoneyLion and Even Financial were honored alongside other top Fintechs, banks, research companies and more. MoneyLion’s consumer business continues to push financial literacy through innovative and personalized content. With the MoneyLion app, users can view personalized financial content in short-form video format and receive personalized financial product recommendations such as loans, insurance and investing. As MoneyLion’s enterprise offering, Even Financial digitally connects and matches consumers with real-time personalized product recommendations from banks, insurance carriers, and Fintech companies on mobile apps, websites and other digital touchpoints through its financial product search engine and Embedded Finance Marketplace technology. This technology powers both the MoneyLion Marketplace, in the MoneyLion app, as well as more than 1,000 enterprise partners.
“We’re thrilled MoneyLion’s consumer and enterprise businesses were recognized by Benzinga,” said Dee Choubey, Co-Founder and CEO of MoneyLion. “Both awards showcase MoneyLion’s every time you money approach to helping our customers. The financial literacy gap is a huge problem for millions of Americans and we remain committed to reducing its effects through engaging, informative content and key partnerships designed to bring an elevated educational experience to all.”
These awards follow the October announcement of MoneyLion University, where MoneyLion launched its latest initiative aimed at closing the gap in money and financial education across the United States.
“We could not be more pleased with Benzinga’s recognition of our company’s API technology,” stated Phill Rosen, CEO and Founder of Even Financial. “Our technology natively integrates real-time credit decisions and product recommendations from the industry’s largest network of connected financial services providers, offering access and choice to consumers searching for financial products. Our elegant Embedded Finance Marketplace, API and search engine enable any company to add trusted, personalized financial products and services to their business, reaching people when and where they need it.”
Even Financial has been named a listmaker for the Benzinga Global Fintech Awards for the last two years and was a previous award winner. In 2021, Even was selected as a listmaker for Best API and, in 2020, selected as a listmaker for both Best API and Best API Platform. In 2019, Even was awarded the Benzinga Rocky Award.
The annual Benzinga Global Fintech Awards take pride in recognizing and honoring the companies and individuals who are propelling the Fintech and financial services industry forward with the most impressive technology advancements and innovations. A panel of industry experts from a wide range of companies reviewed and judged the nominations. Winners were announced at Benzinga’s Fintech Deal Day on December 8, 2022, where MoneyLion’s Chief Customer Officer Cynthia Kleinbaum spoke on the panel, Expert Growth Hacks For Reaching Underserved Markets.
About MoneyLion MoneyLion is the go-to destination for personalized financial content, products and advice. MoneyLion’s mission is to rewire the financial system to positively change the path of every hard-working American. MoneyLion uses its proprietary data advantage and technology to empower its customers. MoneyLion engages and educates its customers with daily, hyper-personalized money-related and money-adjacent content that is delivered through each customer’s own content feed. MoneyLion provides its customers a full suite of financial and non-financial solutions, bundling its proprietary, low-cost financial products with products that are offered through its marketplace technology and network affiliate partners. MoneyLion also leverages its distinct data, technology, and network advantages to deliver leading embedded finance and marketplace solutions for enterprise customers. Since its founding in 2013, MoneyLion has empowered millions of Americans to take control of their finances and live their best financial life, every day.
For more information about the company, visit https://www.moneylion.com/ and https://www.evenfinancial.com. For investor information and updates, visit investors.moneylion.com and follow @MoneyLionIR on Twitter.
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New York, Jan. 11, 2023 -- Even Financial ("Even"), an independent subsidiary of MoneyLion Inc. (NYSE: ML), and a leading embedded finance marketplace platform, is proud to announce that it was honored in Built In’s “2023 Best Places To Work” Awards. Specifically, Even earned a place on the Hybrid Best Places to Work in New York.
The Best Places to Work Awards, now in its fifth year, honors companies across numerous categories, sizes, remote-first employers as well as in person and hybrid working companies across the U.S.
Built In determines the winners of Best Places to Work based on an algorithm, using company data about compensation and benefits, and also weighs criteria like remote and flexible work opportunities, as well as other people-first cultural offerings.
This announcement follows Even’s recent win at the Benzinga Global Fintech Awards for “Best API.”
About Even Financial
Even is the industry-leading embedded financial marketplace and independent subsidiary of MoneyLion Inc. (“MoneyLion”) (NYSE: ML). MoneyLion is a leading digital financial services and lifestyle content platform serving both consumer and enterprise customers. As part of MoneyLion’s enterprise offering, Even digitally connects and matches consumers with real-time, personalized financial product recommendations from banks, insurance carriers, and fintech companies on mobile apps, websites, and other digital touchpoints through its marketplace technology. Even's infrastructure leverages machine learning and advanced data science to solve a significant pain point in financial services customer acquisition, seamlessly bridging financial services providers (such as SoFi) and channel partners (such as TransUnion) via its industry-leading API and embedded finance marketplaces. Even enables any company to add financial products to its business, with full compliance and security at scale. Even was named one of "America's Best Startup Employers'' by Forbes for 2022 and was named to the 2021 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world. Learn more at www.evenfinancial.com and investors.moneylion.com.