About Unlock Technologies
When a homeowner pays off their mortgage, they gain equity. Unlock Technologies assists homeowners in 15 states to access their equity to pay off other commitments or needs, such as home improvement projects, without taking out a loan.
Unlock Technologies, situated in San Francisco, California, was founded in June 2021. Its goal is to allow homeowners to use their equity to pay off debt, make home improvements, or pay for tuition without taking out a loan. There are no monthly payments or interest, and homeowners with low credit or a lot of debt can still qualify. However, you continue to pay your mortgage and other house-related bills like home insurance. Unlock Technologies can assist you with an immediate influx of cash when you are short on cash and need to renovate, pay off your children's tuition, or even take a long-awaited vacation. Because this isn't a loan, you won't have to worry about monthly payments or interest rates. However, be aware of what you are giving up in order to collect your funds. You'll wind up owing significantly more than you received from Unlock. On the other hand, the money you get from Unlock might just be enough to help you pay off a bill that would have otherwise led to more debt.
Pros and cons
Getting your equity back without paying a monthly payment or interest is enticing, but there are many advantages and disadvantages to doing so. Even if you need the money urgently, consider the long-term implications before signing this home equity agreement.
Pros
There are no monthly payments or interest charges.
A soft credit check is done, but one has no effect on your credit score.
To qualify, you only need a 500 credit score.
There is no minimum income requirement.
There are no restrictions on how you can spend the money you get from unlocking your equity.
You can get a cash estimate in as little as 60 seconds by filling out a simple online form.
Cons
Unlick is only available in 15 states.
Unlock receives over 16% of your equity, which is more than you receive in the cash-out refinancing.
If you cannot afford to buy out Unlock at the end of the term, you may have to sell your house.
Loan conditions
To be eligible for a home equity payback from Unlock, you must be over 18. You must also live in one of the following states: Arizona, California, Colorado, Florida, Michigan, Minnesota, Nevada, New Jersey, North Carolina, Oregon, South Carolina, Tennessee, Utah, Virginia, or Washington.
A strong credit score is also not required. Unlock may approve you if you have a FICO score of 500 or higher.
Then, you will need to have at least 20% equity in your property. If your house is worth $400,000, you must have paid off your mortgage by over $80,000. Additionally, your minimum loan-to-value (LTV) should be 70%.
However, you must have bought out the lender from your home to obtain a second equity payback through Unlock. You must also have a mortgage that has been paid off over 20% of the house’s purchase price.
Funding a loan
It takes about 60 seconds to complete the preliminary approval procedure. The appraisal and house inspection can take up to 30 days when you present all of the necessary information. If your documents and information are correct and up to date, Unlock can complete the appraisal and house inspection in as little as 10 days.
