Fraction blog

Looking to learn more? Here are some resources.

Fraction is now partnering with mortgage brokers across Washington

Fraction kicks off partnerships with mortgage brokers across the US 

How do inflation and rising rates affect the housing market?

Rising inflation and interest rates can affect the real estate market, but the cause and effect isn’t always so straightforward. See how these areas intertwine.

Refinancing? Here's how to boost your home’s appraisal value before applying

Here are three quick, easy, and low-cost home upgrades you can do this month to help increase your home appraisal amount before apply for a refinance.

3 things you need to know about buying a second house

Thinking of purchasing a second home? Here are the three things you need to know about before you jump in - with some fast facts for funding your new home purchase.

Fixed vs. variable mortgage: Which should I choose?

A fixed-rate mortgage can provide stability, but whether or not it’s cheaper than a variable-rate mortgage can depend on factors like interest rate changes. Here is everything you need to know before getting a mortgage or loan.

Should I use a HELOC to pay my medical bills?

Need relief from unexpected or expected medical bills? In this blog, we share information on using your home equity to pay medical expenses and the pros and cons you should be aware of.

Requirements for a home equity loan or HELOC in 2022

Taking out a home equity loan or HELOC can help you access the equity you’ve built up in your home. See what’s needed to qualify and how you can benefit.

How to take advantage of the real estate boom if you don't want to move

Tapping into your home equity can help you take advantage of the real estate boom, without having to move. See what your options might be to access your equity.

What is a Lien?

Here’s what you need to know about the different types of liens and how they affect you.

Home inspection vs. appraisal: what’s the big difference?

What is an appraisal? What is the difference when it comes to a home inspection vs. appraisal? And how can these processes aid in home purchase or even a favorable home valuation? Our blog can help.

The best ways to finance home improvements

Home improvement loans are an option for many to pay for home renovations when the cash is just not readily available. There are also more frugal ways to pay for home renovations. We are breaking down the various ways you can finance your home improvements.

Understanding home equity investments and how they impact your homeownership

Also known as co-investing or home equity sharing, an home equity investment HEI is a way to tap into your home equity through an alternative equity sharing agreement. Learn how HEIs work and how they can impact your homeownership in this blog.

What’s the best way of using your home equity during retirement?

We compare the financial options for homeowners in to retirement age. Here's how to tap into your home equity.

Fraction is now available in the US!

We're excited to announce that the Fraction Mortgage is now available in the US. Launching first in Washington State, we are excited to empower homeowners with socially conscious financial solutions.

Should you use a home equity loan to consolidate debt?

Debt consolidation is the process of combining all of your smaller credit card debts or personal loan balances into one. Here’s everything you need to know about using home equity to consolidate debt.

Having tough conversations with loved ones about money

Conversations about money can be challenging. It can be tough to identify it, but money is typically interwoven with deeply held learnings. Here is how to have the conversation with anyone in your life, and how to build better financial habits in the future.

How do home equity lines of credit work?

Before signing up for any loans or financial solutions, it’s essential to understand the process and how it may impact your life. In this blog, we’ll dive into everything you need to know about HELOCs, preparing you to make the best choice for your financial needs. 

How does a reverse mortgage compare to a home equity loan?

Home equity loans and reverse mortgages are two readily available options you can use when you need to access cash. While similar, both come with very different terms and conditions. Here is a brief overview of the differences to help you understand which home financing options are the right fit for you.

Fraction has raised our Series A!

We've raised $20 million to fuel our expansion into the US market and to continue building out our product offerings.

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Access up to 45% of your hard-earned equity in tax-free cash without selling your home. Our motto is “spend a little, invest a lot, and save some for a rainy day.”
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© 2022 Fraction Technologies Inc.
2120 University Ave, Unit 407, Berkeley, 94704
Fraction Lending US, Inc.
NMLS #: 2084341
NMLS Consumer Access

Fraction Mortgage is available in WA with more states to come.

Equal Housing Opportunity

This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.

*Important Disclosures:

  1. The interest rate for the Fraction Mortgage is calculated based on an Index, which is the Zillow Home Value Index (ZHVI), which is published at https://www.zillow.com/research/data/ on the third Thursday of each month.  The interest rate at a given date during the term will be calculated as the change in the ZHVI from the initial date of origination up to that given date during the term. The minimum APR for a 5 year Fraction Mortgage is 6.20% and the maximum APR is 12.20%. The minimum APR for a 10 year Fraction Mortgage is 7.57% and the maximum APR is 15.91%.
  2. The Fraction Mortgage is an open-end product where the full loan amount (minus the origination fee) will be 100% drawn at the time of origination. As the borrower repays the balance on the line, the borrower may make additional draws during the draw period. If the borrower elects to make an additional draw, the interest rate for that draw will match the interest rate of the existing principal.
  3. You will be responsible for both a lending fee and an origination fee, which combined could total up to 2.5% of your initial draw, depending on the state in which your property is located. You may also be responsible for paying recording fees, which vary by county, as well as inspection and appraisal fees, which vary by property.
  4. Our loan amounts range from a minimum of $50,000 to a maximum of $1,500,000. Your maximum loan amount may be lower than $1,500,000 and will ultimately depend on your home value at the time of application. We determine your home value through independent data sources, automated valuation models, and third-party appraisals.
  5. To check whether you might qualify for a Fraction Mortgage, we will conduct a soft credit pull that will not affect your credit score. However, if you continue and submit an application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
  6. The Fraction Mortgage is a lending product with a fixed-term and secured against a property. Interest accrues over the term of the loan, with no monthly payments owed over the loan term. The Fraction Mortgage is available to homeowners over 18 years old. Fraction will accept applicants with a minimum FICO credit score of 640. An inspection may be required if your loan balance exceeds $1,000,000 and will cost approximately $750. Property insurance is required as a condition of the loan and flood insurance may be required if your property is located in a flood zone. Other taxes and government fees may be charged by your county and/or state. All fees other than the origination fee are paid to third parties and will be based on the actual cost of the services. The minimum term is 5 years and the maximum term is 10 years.
  7. Repayment is due at the end of the term and can be paid at any time up to and including the end of the loan term. Renewal options are available pending a new credit check and sufficient equity in the property.